- Crocs Inc (NASDAQ:CROX) has agreed to acquire HEYDUDE, a privately-owned casual footwear brand, for $2.5 billion. HEYDUDE was founded in Italy in 2008.
- Crocs will fund the deal with $2.05 billion in cash and $450 million in shares issued to HEYDUDE founder and CEO Alessandro Rosano.
- HEYDUDE will operate as a standalone division after the deal's completion, which is expected to occur in the first quarter of 2022.
- Alessandro Rosano will continue to lead product development as Strategic Advisor and Creative Director. Crocs has hired Rick Blackshaw to join HEYDUDE as EVP and Brand President as part of this transaction.
- Crocs expects to enter into a $2.0 billion Term Loan B Facility and borrow $50 million under its existing Senior Revolving Credit Facility to fund the cash consideration. It held $441.7 million in cash and equivalents as of September 30, 2021.
- Price Action: CROX shares are trading lower by 1.63% at $137.50 in premarket on the last check Thursday.
