Rocky Brands, Inc. has signed a definitive asset purchase agreement with Kommonwealth, Inc. to acquire certain assets including the Creative Recreation trademark, a lifestyle footwear brand best known for its collection of upscale sneakers. The total purchase price will be approximately $11 million, subject to a working capital adjustment. The acquisition, which will be funded by Rocky Brands’ existing cash balances and funds available under its existing revolving credit facility, is expected to be accretive to earnings in 2014, says the company.
Headquartered in Los Angeles, since 2002, Creative Recreation markets versatile footwear that can easily transition between casual and more formal environments. Its ability to successfully fuse style and versatility across a diversified assortment of products has created a wide target demographic and a strong distribution network that spans multiple channels and price points including Barneys New York, Nordstrom and Journeys, says the company.
“We believe by combining Rocky’s strong operating platform and access to capital with Creative Recreation’s design expertise we can strategically expand their business both domestically and oversea,” said David Sharp, Rocky Brands’ president and CEO. “At the same time, this transaction provides us with a compelling vehicle to penetrate the casual end of the market to complement our work, western and outdoor categories.”
The acquisition is expected to be completed by the end of December 2013 subject to customary closing conditions. Rocky Brands brands include Georgia Boot, Durango, Lehigh, and the licensed brand Michelin Footwear.
