Wolverine Worldwide (WWW) to Complete Collective Brands' (PSS) PLG Purchase for $1.24B; Sees EPS Dilution
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Price: $11.21 +0.27%
EPS Growth %: -88.9%
Financial Fact:
Net earnings: 48.2M
Today's EPS Names:
FSI, RELV, NEOM, More
EPS Growth %: -88.9%
Financial Fact:
Net earnings: 48.2M
Today's EPS Names:
FSI, RELV, NEOM, More
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Wolverine Worldwide (NYSE: WWW) will complete the previously announced acquisition of Collective Brands' (NYSE: PSS) Performance + Lifestyle Group ("PLG"), which consists of the Sperry Top-Sider®, Saucony®, Stride Rite® and Keds® brands, for a total purchase price of approximately $1.24 billion. Adding these exciting brands to an existing portfolio that is led by Merrell, Hush Puppies, Wolverine, Sebago and Caterpillar Footwear creates an even more powerful collection of lifestyle brands that positions the Company for accelerated growth in both revenue and profits.
With more than $1.0 billion of revenue and almost 40 million pairs shipped in its fiscal 2011, PLG will become the Company's largest operating group, joining the Company's existing Outdoor Group (Merrell, Chaco and Patagonia Footwear), Heritage Group (Wolverine, CAT Footwear, Harley-Davidson Footwear, Bates and HyTest) and Lifestyle Group (Hush Puppies, Sebago, Cushe and Soft Style). PLG will remain headquartered in Lexington, Massachusetts.
The Company is projecting earnings dilution in the range of $0.25 to $0.30 per share for the stub period through the end of its fiscal 2012, earnings accretion in fiscal 2013 in the range of $0.35 to $0.50 and earnings accretion in fiscal 2014 in the range of $0.60 to $0.80. These estimates include the expected incremental contribution from the PLG brands, expected net SG&A synergies, interest expense, amortization related to purchase price accounting and amortization of capitalized debt fees. The estimates do not include non-recurring transaction-related expenses (other than the amortization of capitalized debt fees), non-recurring integration costs and revenue synergies resulting from the Company's expanded portfolio of brands.
With more than $1.0 billion of revenue and almost 40 million pairs shipped in its fiscal 2011, PLG will become the Company's largest operating group, joining the Company's existing Outdoor Group (Merrell, Chaco and Patagonia Footwear), Heritage Group (Wolverine, CAT Footwear, Harley-Davidson Footwear, Bates and HyTest) and Lifestyle Group (Hush Puppies, Sebago, Cushe and Soft Style). PLG will remain headquartered in Lexington, Massachusetts.
The Company is projecting earnings dilution in the range of $0.25 to $0.30 per share for the stub period through the end of its fiscal 2012, earnings accretion in fiscal 2013 in the range of $0.35 to $0.50 and earnings accretion in fiscal 2014 in the range of $0.60 to $0.80. These estimates include the expected incremental contribution from the PLG brands, expected net SG&A synergies, interest expense, amortization related to purchase price accounting and amortization of capitalized debt fees. The estimates do not include non-recurring transaction-related expenses (other than the amortization of capitalized debt fees), non-recurring integration costs and revenue synergies resulting from the Company's expanded portfolio of brands.
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