Collective Brands, Inc.
) recently announced the early termination of Hart-Scott-Rodino
waiting periods in connection with its pending merger with a group
of buyers including footwear giant
Wolverine World Wide, Inc
COLLECTIVE BRND (PSS): Free Stock Analysis
WOLVERINE WORLD (WWW): Free Stock Analysis
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In May 2012, Collective Brands, a leading lifestyle footwear and
accessories brand company, agreed to be bought by a group of
companies comprising Hush Puppies owner Wolverine World Wide and
private equity firms Blum Strategic Partners and Golden Gate
Capital Opportunity Fund. The purchase consideration will be $21.75
per share in cash or around $2 billion including debt.
Per the terms of the merger agreement, Wolverine World Wide will
acquire Collective Brands' Performance + Lifestyle Group (PLG)
unit. The PLG unit sells footwear and related products, both
wholesale and retail, for children and adults under popular brands
including Stride Rite, Sperry Top-Sider, Saucony, and Keds. The
other two units, Payless ShoeSource and Collective Licensing
International, will be jointly taken up by Blum Capital and Golden
Gate. The units will operate as a separate standalone entity.
Payless ShoeSource is one of the largest footwear retailers in the
world selling a broad assortment of footwear and accessories
through owned or franchised stores. Collective Licensing
International is a global licensing company focused on marketing
and building brands for the youth.
The transaction is still subject to shareholder approval and some
other customer closing conditions.
Collective Brands is riding high on the news of the merger and
consistently strong earnings results. We currently have an
Outperform recommendation on Collective Brands. The stock carries a
Zacks #1 Rank (short-term 'Strong Buy' rating).