Interviews
Athletic brand Saucony extends Stride Rite's portfolio of nationally recognized footwear brand
03 Jun '05
5 min read
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 of America, N.A. Stride Rite will be conservatively leveraged at less than two times cash flow, and is expected to generate significant free cash.
The transaction is expected to close in the summer of 2005 and is subject to regulatory approval, approval by the holders of at least two-thirds of Saucony's Class A shares and the holders of at least two-thirds of Saucony's Class A and B shares voting together as a single class, and other customary closing conditions. Certain of Saucony's senior executives and their affiliates representing approximately 49% of Saucony's Class A common stock and 25% of Saucony's combined Class A and Class B shares have agreed to vote in favor of the merger. Stride Rite has requested that John Fisher serve as a consultant to the company for approximately one year following completion of the transaction.
Lane, Berry & Co. International, LLC acted as financial advisor to Stride Rite in connection with this transaction and rendered a fairness opinion to Stride Rite's Board of Directors. Goodwin Procter served as legal advisor to Stride Rite.
The Stride Rite Corporation is an NYSE company with approximately $558 million in 2004 sales that markethat markets the leading brand of high-quality, non-athletic children's shoes in the U.S. Other footwear products for children and adults are marketed by the Company under well-known brand names, including Stride Rite, Keds, PRO-Keds, Sperry Top-Sider, Tommy Hilfiger and Grasshoppers.
The transaction is expected to close in the summer of 2005 and is subject to regulatory approval, approval by the holders of at least two-thirds of Saucony's Class A shares and the holders of at least two-thirds of Saucony's Class A and B shares voting together as a single class, and other customary closing conditions. Certain of Saucony's senior executives and their affiliates representing approximately 49% of Saucony's Class A common stock and 25% of Saucony's combined Class A and Class B shares have agreed to vote in favor of the merger. Stride Rite has requested that John Fisher serve as a consultant to the company for approximately one year following completion of the transaction.
Lane, Berry & Co. International, LLC acted as financial advisor to Stride Rite in connection with this transaction and rendered a fairness opinion to Stride Rite's Board of Directors. Goodwin Procter served as legal advisor to Stride Rite.
The Stride Rite Corporation is an NYSE company with approximately $558 million in 2004 sales that markethat markets the leading brand of high-quality, non-athletic children's shoes in the U.S. Other footwear products for children and adults are marketed by the Company under well-known brand names, including Stride Rite, Keds, PRO-Keds, Sperry Top-Sider, Tommy Hilfiger and Grasshoppers.
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