Wolverine Worldwide acquires women's sportswear brand Sweaty Betty
Merrell and Saucony parent company Wolverine Worldwide has acquired Lululemon competitor Sweaty Betty from private equity firm L Catterton for $410.0m.
Wolverine funded the deal with a combination of cash and a revolving line of credit and expects the addition of Sweaty Betty to its portfolio to immediately add to earnings, leading the firm to raise its full-year revenue forecast to a range of $2.44bn to $2.5bn.
Brendan Hoffman, Wolverine's incoming chief executive, said: "Sweaty Betty aligns perfectly with our strategic growth plan for Wolverine Worldwide, as we focus on growing digital channels, expanding our international footprint, and building our brand portfolio beyond footwear."
The deal will provide Wolverine with access to Sweaty Betty's expertise in apparel and the growing market for women's premium activewear, while Sweaty Betty will benefit from its new owner's footwear expertise and US retail experience.
As of 1600 BST, Wolverine shares were up 1.01% at $33.99 each.