Athletic brand Saucony extends Stride Rite's portfolio of nationally recognized footwear brand

03 Jun '05

5 min read

Additionally, They expect that Stride Rite's strength in department stores and national chain accounts will help Saucony expand to its full potential. The acquisition will double our international sales and provide critical mass for growth of all of our brands in Europe and worldwide. Saucony will also enhance Stride Rite's athletic development, sourcing capabilities and leverage for our Stride Rite, Tommy Hilfiger and Sperry Top-Sider brands. We look forward to welcoming the talented Saucony employees to our Stride Rite family."

John H. Fisher, Saucony's president and chief executive officer, said, "We are very pleased to enter into this agreement. Stride Rite's and Saucony's complementary strengths will provide a stronger platform for growth and profitability."

Combining Stride Rite's $558 million in 2004 sales with Saucony's $167 million in 2004 sales will create a company with pro forma combined revenues of approximately $725 million. The acquisition is expected to be accretive to Stride Rite's earnings and cash flow in 2006 before one-time costs, with significant cost savings through reduced public company and executive costs, and other operational synergies.

Annual cost synergies of approximately $6-8 million are expected to be fully realized by fiscal 2007. Stride Rite intends to finance the acquisition with cash on hand, Saucony's existing cash of approximately $30 million, and borrowings under a new credit facility led by Bank osynergies.

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