British fashion retailer Sweaty Betty, known for women’s activewear, is now sold to renowned American footwear firm Wolverine Worldwide for US $ 410 million.
The acquisition of womenswear brand is seen as a part of Wolverine’s ambition of expanding its categories as well as geographies.
The deal which was completed earlier this week was funded by cash and a revolving line of credit.
Wolverine, reportedly, believes that Sweaty Betty will immediately add to former’s earnings and therefore has increased its annual revenue forecast to a range of US $ 2.44 billion to US $ 2.5 billion.
The acquisition deal will also enable Wolverine to fully utilise Sweaty Betty’s expertise in apparels and the fast-growing market for women’s premium activewear.
On the other hand, the British retailer too can benefit from Wolverine’s expertise in footwear sector, in addition to gaining from Wolverine’s rich experience in the US.
Julia Strauss, CEO, Sweaty Betty will, reportedly, stay in her role and will report to Brendan Hoffman, President, Wolverine.
Founded in 1998, apparel retailer Sweaty Betty has 65 stores in the UK and Hong Kong and expects about US $ 250 million in revenue this year.