Crocs announced it would buy privately held footwear maker Heydude for $2.5 billion Thursday. CROX stock sold off hard.
The deal includes $2.05 billion in cash and $450 million in Crocs shares issued to the founder of Heydude, Alessandro Rosano. The transaction is expected to close in the first quarter of 2022, subject to closing conditions and regulatory approval.
Originally from Italy, Heydude makes slide-on boat shoes, flip-flops and boots at the $40 to $80 price range.
“Heydude has experienced incredible growth in revenue and profits over the past few years,” Crocs CFO Anne Mehlman said in the release. “Heydude is expected to be immediately accretive to our high revenue growth, industry-leading operating margins and earnings.”
Shares dropped 11% to 123.88 on the stock market today. Crocs stock fell to around its 200-day line earlier this month before starting to climb again, according to MarketSmith charts.
Among other shoe companies, Allbirds (BIRD) fell 4.1%, Dow Jones stock Nike (NKE) edged up 0.3% and Skechers (SKX) rallied 0.9%.
Crocs stock has a 92 Composite Rating. Its EPS Rating is a best-possible 99.
Crocs, known for its colorful plastic clogs, has grown popular in recent years on partnerships with celebrities like Justin Bieber and DJ and producer Diplo. The company also sells charms, called Jibbitz, to customize their shoes.
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