Timberland & RAF Ind in talks for SmartWool Corp stocks
09 Nov '05
3 min read
Premium-quality footwear designer Timberland announced that it signed a definitive agreement today to acquire 100 percent of the outstanding stock of SmartWool Corporation, from RAF Industries Inc and the Stripes Group LLC.
SmartWool, a privately held company based in Steamboat Springs, Colorado, designs, develops, markets and distributes premium performance socks, apparel and accessories for men, women and children.
The purchase price is estimated to be approximately $82 million and will be funded through Timberland's existing cash balances and short-term borrowings. The SmartWool organization will continue to be headquartered in Steamboat Springs, Colorado and will operate as a wholly-owned subsidiary of The Timberland Company under the leadership of Chip Coe, SmartWool's President.
Founded in 1994 by New England ski instructors who saw the potential for developing performance-based products for outdoor activities, SmartWool originated, and is the recognized market leader in, the outdoor-based merino wool sock market. SmartWool's extraordinary comfort and performance have enabled it to expand its offering beyond socks to premium wool-based apparel and accessories.
SmartWool products are available in over 2,000 better outdoor specialty stores throughout the United States and through independent distributors in Canada, Europe and Asia. SmartWool and Timberland partnered in early 2005 to develop and market performance footwear featuring SmartWool linings.
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