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EX - 99.1 3 exhibit991 pressrelease1223.htm EX - 99.1 Exhibit 99.1 crocs ™ Investor Contact : Cori Lin , Crocs , Inc. ( 303 ) 848-5053 clin@crocs.com PR Contact : Melissa Layton , Crocs , Inc. ( 303 ) 848-7885 mlayton@crocs.com Crocs , Inc. to Acquire Casual Footwear Brand HEYDUDE ™ Creating A Leader in Global Casual Footwear Transaction Expected to be Immediately Accretive to 2022 Revenue Growth , Operating Margin and Earnings BROOMFIELD , COLORADO _ December 23 , 2021 - Crocs , Inc. ( NASDAQ : CROX ) , a world leader in innovative casual footwear for women , men , and children , today announced that it has entered into a definitive agreement to acquire HEYDUDE ™ , a privately- owned casual footwear brand , for $ 2.5 billion . " With the acquisition of HEYDUDE , we are thrilled to add another high - growth , highly profitable brand to our portfolio , " said Andrew Rees , Chief Executive Officer of Crocs . " We believe HEYDUDE's casual , comfortable and lightweight products are aligned to long - term consumer trends and are a perfect fit for Crocs . We intend to leverage our global presence , best - in - class marketing and scale infrastructure to build upon HEYDUDE's strong foundation and create significant shareholder value . We truly admire the business that founder Alessandro Rosano has built and are honored to welcome the HEYDUDE team to Crocs . " HEYDUDE founder and Chief Executive Officer , Alessandro Rosano said , " We founded HEYDUDE in Italy in 2008 , to develop comfortable , versatile and accessible footwear . We are proud of the brand we built and are honored to become a part of Crocs , a company perfectly positioned to take HEYDUDE to the next level . We have long admired the Crocs business and are excited to have them bring HEYDUDE's comfort , craftsmanship , and style to consumers globally . " Crocs Executive Vice President and Chief Financial Officer , Anne Mehlman said , “ HEYDUDE has experienced incredible growth in revenue and profits over the past few years . HEYDUDE is expected to be immediately accretive to our high revenue growth , industry- leading operating margins and earnings . We expect the combined business to generate significant free cash flow , enabling us to quickly deleverage while investing to support future growth . We are excited about the combination and are confident in our ability to deliver long- term shareholder value . " Transaction Details The purchase price of $ 2.5 billion , subject to customary closing adjustments , will be funded by $ 2.05 billion in cash and $ 450 million in Crocs shares issued to Mr. Rosano based on the average of the daily volume - weighted average price of our stock for the 20 days immediately prior to the signing date . We expect to enter into a $ 2.0 billion Term Loan B Facility and borrow $ 50 million under the Company's existing Senior Revolving Credit Facility to fund the cash consideration . The transaction is expected to close in the first quarter of 2022 , subject to customary closing conditions and regulatory approval . Upon completion of the transaction , HEYDUDE will operate as a standalone division . Alessandro Rosano , founder of HEYDUDE , will continue to lead innovative product development as Strategic Advisor and Creative Director . As part of this transaction , Rick Blackshaw was hired to join HEYDUDE as Executive Vice President and Brand President . Mr. Blackshaw brings over 25 years of footwear experience and most recently served as the CEO at CCM Hockey and previously held positions as the President of Sperry , President of Keds , and Vice President / General Manager of the Chuck Taylor division of Converse . Mr. Blackshaw will be a member of the Crocs Executive Leadership Team and report to CEO Andrew Rees . Additional details about the transaction are contained in a presentation on the Investor Relations section of the Crocs website , investors.crocs.com .