Footwear maker K-Swiss is being acquired by South Korean apparel conglomerate E-Land World for $170 million.
Under the agreement, E-Land will buy all of the outstanding common stock of K-Swiss for $4.75 per share in cash. It will use existing resources and credit facilities to fund the acquisition.
The deal, which is expected to close during the second quarter of this year, requires the approval of 80% of K-Swiss’ outstanding voting power.
Certain Class A and Class B stockholders, who collectively hold approximately 75% of the voting power, have executed agreements to vote in favour of the transaction.
K-Swiss chairman Steven Nichols said the deal is in the best interests of the company and its stockholders.
“E-Land has a 30-year record of successfully building a global fashion and retail conglomerate and also shares our culture of valuing associates. I believe that such a platform will provide K-Swiss with the resources and scale to return to its former performance levels and to further maximise Palladium’s potential,” he said.
While E-Land World president SungKyung Park said: “K-Swiss is a well-established international sports brand and we are very excited about the tremendous potential both the K-Swiss and Palladium brands bring to our proven global platform. We look forward to investing in the company and building upon its heritage.”
Goldman, Sachs & Co is acting as the sole financial advisor to K-Swiss and Gibson, Dunn & Crutcher is acting as legal counsel for the company. Morgan Stanley is the sole financial advisor to E-Land World, while Linklaters is acting as legal counsel for the group.