Phoenix signs definitive deal to sell its Royal Robbins division to Kellwood
19 Jun '07
2 min read
Phoenix Footwear Group Inc a multi-brand footwear, apparel and accessories company, announced that it has signed a definitive agreement to sell its Royal Robbins division and related business assets to Kellwood Company (“Kellwood”), a leading marketer of apparel and consumer soft goods.
Under the terms of the agreement, upon consummation of the transaction Kellwood will pay approximately $40 million in cash, subject to a working capital adjustment.
Phoenix Footwear expects to report a net pre-tax gain of approximately $23 million on the sale including transaction costs.
Phoenix Footwear acquired Royal Robbins on October 31, 2003 for a total of $11.7 million. Phoenix Footwear was advised by KSA Capital Advisors, Inc on the transaction.
Commenting on the transaction, Jim Riedman, Chairman of Phoenix Footwear Group Inc, said, “Royal Robbins is an outstanding brand with strong revenues and a very loyal following, and we are very pleased with a three-fold return we expect to achieve on this asset in just over a three-year period."
"This transaction represents a significant step in our plan to position our company to further enhance shareholder value. It provides a source of capital that will allow us to further pursue our growth strategy of focusing on the strengthening of our remaining brands and paying down the majority of our long-term debt.”
Founded in 1968 by outdoor enthusiasts, Royal and Liz Robbins, Royal Robbins is known for comfortable, rugged clothing and classic styles. Royal Robbins' Go Everywhere line of technical clothing gear, featuring lightweight, wrinkle-resistant supplex nylon, is particularly popular among hikers, kayakers and other outdoor enthusiasts.
marketing@alchempro.com
