Cherokee Global Brands, a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands, has announced its intention to enter into a share purchase agreement to acquire Hi-Tec Sports International Holdings, a global footwear company for an aggregate cash purchase price of approximately US $ 95.8 million. Netherlands-based Hi-Tec is a privately-held branded footwear company that designs, markets and sells footwear globally, primarily under the Hi-Tec and Magnum brands.
Henry Stupp, Chief Executive Officer, Cherokee Global Brands stated, “The acquisition of Hi-Tec and Magnum brands aligns with our strategic focus of diversifying and building upon our active lifestyle portfolio as we continue to grow our global footprint. Hi-Tec’s high-equity brands will build upon our presence in the active, outdoor markets, and we are excited by the potential to further expand these brands into additional categories including apparel, accessories, wearables, outdoor products and more.”
Upon closing of the transaction, Cherokee will sell substantially all assets related to Hi-Tec’s wholesale operations to new operating partners, the proceeds from which shall fund a portion of the Hi-Tec acquisition purchase price.
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Ed Van Wezel, CEO, Hi-Tec averred, “This is an exciting time, and we are pleased to join Cherokee Global Brands who have built a compelling global platform, that combined with the new brand licensing model will allow us to adapt to the fast-changing retail and consumer environment, broaden the reach and offering of Hi-Tec’s core brands while we build upon our select distribution channels. I look forward to working Cherokee Global Brand’s team and making Hi-Tec’s products available to a broader global customer base, as we expand our existing relationships through new product category introductions.”
Assuming the Hi-Tec acquisition is consummated, Cherokee expects Hi-Tec to contribute approximately US $ 19 million of licensing revenue and US $ 7 million in Adjusted EBITDA during the first full fiscal year after the closing of the acquisition. The parties expect the transaction documents to become effective today and the transactions to close in the current fiscal quarter ending 28th January, 2017.
