K•Swiss announces Palladium SAS acquisition
May 26, 2008 - United States Of America
K•Swiss Inc announced the company has signed a definitive agreement to purchase 57% of the equity interests of Palladium SAS from its stockholders for a total purchase price of approximately 5.3 million Euros in cash (including a loan of 3.6 million Euros). In addition, K•Swiss has agreed to acquire the remaining 43% of Palladium based on a formula driven by Palladium’s EBITDA for the year ending December 31, 2012. Closing of the 57% equity purchase is expected by July 1, 2008.
Palladium, based in St Priest, France, designs and sells fashion footwear under the Palladium brand primarily in Europe. Palladium revenues are projected to be approximately 15 million Euros for the fiscal year ending September 30, 2008 and Palladium is currently profitable. In a separate transaction, K•Swiss previously acquired the Palladium trademarks for the United States and Canada for $6,000,000 in cash.
Commenting on the announcement, Steven Nichols, Chairman of the Board and President, said, “The acquisition of Palladium is a strong strategic fit for us. This growth investment is marginally accretive and consistent with our stated goal of allocating capital to opportunities that offer long-term growth.”
K•Swiss Inc. designs, develops and markets an array of athletic footwear for high performance sports use, fitness activities and casual wear.