Wolverine World Wide Accelerates Portfolio Transformation: Hush Puppies IP Sale and Wolverine Leathers Business Divestiture
6 September 2023
Wolverine World Wide has unveiled additional measures as part of its ongoing brand portfolio transformation, featuring the divestment of the Hush Puppies intellectual property within China, Hong Kong, and Macau, as well as the sale of its US-based Wolverine Leathers business
In the words of Mike Stornant, Executive Vice President and Chief Financial Officer of Wolverine Worldwide, "These transactions are the latest actions in our ongoing effort to reshape our portfolio and target our most meaningful opportunities. We continue to streamline our organization and become more efficient, so that we can direct greater resources into our growth brands, pay down debt, and enhance long-term shareholder value."
The sale of Hush Puppies trademarks, patents, copyrights, and domains in China, Hong Kong, and Macau is set to occur through a definitive agreement with the current sublicensee, Beijing Jiaman Dress Co., Ltd., for an approximate sum of $58.8m. This transaction also includes a License and Cooperation agreement that outlines mutual engagement and brand stewardship of Hush Puppies in the specified region. Notably, Wolverine will retain ownership and operation of the Hush Puppies brand in all other global markets. The expected closing of this transaction in the coming weeks is contingent upon the satisfaction of customary closing conditions.
“Our strategic approach in China, Hong Kong and Macau is to focus on our biggest brands, and selling the Hush Puppies intellectual property in these countries is a part of this strategy,” said Chris Hufnagel, President and Chief Executive Officer of Wolverine Worldwide. “Hush Puppies remains an important brand in our portfolio, and we are committed to growing it through strong global licensing partnerships and expanding our connections with local consumers. We look forward to partnering with Beijing Jiaman Dress and to ensuring the global success of Hush Puppies.”
Furthermore, the Company has successfully concluded the sale of its US-based Wolverine Leathers business to its long-time customer, New Balance, for total proceeds of approximately $6 million. As part of this transaction, Wolverine has transferred its US tannery contracts to New Balance, while actively exploring alternatives for the non-US Wolverine Leathers business.
These recent transactions build upon the Company's prior sale of Keds to Designer Brands, Inc., the parent company of footwear retailer DSW, as well as the previously disclosed exploration of strategic alternatives for Wolverine's Sperry brand.
