Deckers Acquires SanukPosted: May 23, 2011
Deckers Outdoor Corporation has signed a definitive asset purchase agreement to acquire the Sanuk brand. The acquisition includes certain assets and liabilities of Sanuk U.S.A. LLC and of C. & C. Partners, LTD., the exclusive licensee for the Sanuk brand in the United States, Europe and Canada. The total purchase price for the assets of both companies related to the Sanuk brand is an initial payment of approximately $120 million in cash subject to certain post-closing adjustments, and includes additional participation payments based upon performance over the next five years. The combined businesses generated in excess of $43 million of unaudited net sales in 2010. Based on the expected closing in the third quarter of 2011, due to the seasonality of the business Deckers expects the acquisition of Sanuk to be modestly accretive to earnings for 2011, before transaction costs. Sanuk will remain headquartered in Orange County, California and senior management will continue to manage the brand.
In announcing the definitive agreement, Deckers President, Chief Executive Officer and Chairman of the Board of Directors Angel Martinez, said, “Sanuk is an ideal addition to the Deckers family of brands. It’s a profitable, well-run business with a corporate culture similar to ours, and provides substantial growth opportunities, particularly within the action sports market where it has a large and loyal customer base of active outdoor enthusiasts. Its authentic product collections complement our existing portfolio with minimal overlap, and it’s a brand that we believe has true global lifestyle potential.”
Sanuk (which means “fun” in Thai) was founded in 1997 by entrepreneur Jeff Kelley, whose first product was a sandal made of green indoor-outdoor carpet. With a history of innovation, product invention, foot-friendly comfort and clever branding, Sanuk is now one of the fastest growing footwear brands in the action sports, outdoor and sports markets. Sanuk is currently available in more than 1,700 retailers in 40 countries and at Sanuk.com, and enjoys diverse acceptance across multiple channels including in most surf/action sports retailers, outdoor retailers such as REI, EMS and Bass Pro, specialty retailers Fred Segal and Nordstrom and large chains including Journeys, Dillards and The Buckle.