Payless ShoeSource Inc and The Stride Rite Corporation announced the signing of a definitive agreement by which Payless will acquire Stride Rite, which owns or licenses such key upscale brands as Stride Rite, Keds, Sperry Top-Sider, Tommy Hilfiger Footwear, Saucony and Robeez, for approximately $800 million plus the assumption of Stride Rite debt.
The all-cash offer of $20.50 per share represents a 32% premium over Stride Rite's average stock price over the past 90 days and was approved unanimously by the boards of directors of both companies.
Concurrent with the closing of the transaction, Payless ShoeSource intends to rename the company Collective Brands, Inc. and, as a holding company, will operate three standalone business units.
Collective Brands is expected to have stronger growth potential than either Payless or Stride Rite alone as a result of a strong portfolio of well-known footwear, lifestyle and athletic brands and competitive advantages stemming from increased scope and scale.
The new Collective Brands holding company will operate a powerful business model with leading retail, wholesale, licensing and e-commerce channels. The three highly complementary and separate business units have distinct missions in terms of their product offering, distribution channels, and target customer base: • Payless stores, focusing on democratizing fashion and design in footwear and accessories through its nearly 4,600 store retail chain; • Stride Rite, centering on lifestyle and athletic branded footwear and high-quality children's footwear sold primarily through wholesaling arrangements and more than 300 Stride Rite store locations; and,
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