Dive Brief:
- Wolverine World Wide Inc. sold its Sperry brand to Authentic Brands Group, Inc. and the Aldo Group, according to a Thursday press release. Authentic paid $70 million, according to an SEC filing.
- Through the acquisition, Aldo Group will become Sperry’s North American operating partner for wholesale, e-commerce and store operations, according to a separate press release from Authentic sent to sister publication Fashion Dive. Aldo will also serve as Sperry’s “partner for footwear design, production and distribution globally.”
- The deal, which closed Wednesday, will bring approximately $130 million to Wolverine in its first quarter, per Wolverine’s release. The funds will go toward paying down some of Wolverine’s approximately $750 million debt.
Dive Insight:
Wolverine has been “exploring strategic alternatives” for its Sperry brand since May 2023. News of the sale comes following the close of the 2024 ICR conference, during which both Wolverine and Authentic made presentations, but didn’t disclose the upcoming deal.
Over the course of 2023, Wolverine sold off or licensed several divisions in an effort to streamline its operations. Sneaker brand Keds was sold to Designer Brands, parent company of shoe retailer DSW, in February 2023 for $123.3 million, and Hush Puppies was licensed to Designer Brands in the U.S. and Canada effective July 1, 2023. Wolverine then sold all its Hush Puppies trademarks, patents, copyrights and domains in China to sublicensee Beijing Jiaman Dress Co., Ltd., for approximately $58.8 million, and sold its U.S. leathers business to New Balance.
This long-anticipated sale of 88-year-old heritage brand Sperry will effectively empty out Wolverine’s Lifestyle Group, and allow the company to focus on its performance and workwear brands, including Merrell, Saucony, Sweaty Betty and Cat.
“The sale of the Sperry brand is the next step in our turnaround and strategic transformation,” Chris Hufnagel, Wolverine’s president and CEO, said in the company’s release. “We conducted a rigorous process that considered a comprehensive set of strategic alternatives for the brand, and we believe this is the best outcome for the Company and our vision for the future.”
The transaction was conducted through Wolverine’s wholly-owned subsidiary, Saucony, Inc., of which Sperry Top-Sider, LLC is a wholly-owned subsidiary. The deal also included “certain inventory and other assets of the Sperry Business…including Sperry retail store leases” that were sold to Aldo for approximately $27 million, per the filing.
“We are excited to bring Sperry into the Authentic platform,” Jamie Salter, chairman and CEO of Authentic, said in the company’s press release. “Sperry's influence extends far beyond fashion, embodying a lifestyle that celebrates exploration.”
In that release, Authentic said it planned to “grow Sperry’s product offerings and expand its market share around the world,” and that “in line with its proven playbook, the company will convert the Sperry business into a licensed model.” Part of the expansion for Sperry will include a move into lifestyle products “including rainwear, sportswear, bags and accessories” and a focus on building Sperry’s presence “across the APAC region,” per the release.
“At our core, we are retailers where the direct relationship with the consumer is key,” David Bensadoun, CEO of the Aldo Group, said in the release. “We’re looking forward to adding 23 Sperry stores to the 430 other branded stores we operate in North America, as well as welcoming Sperry’s store employees to our team. Our powerful operational structure for stores, wholesale and e-comm has been built over five decades, and we’re excited to put our deep experience to use right away elevating Sperry.”
