Wolverine Worldwide sells Champion footwear license to HanesBrands
Wolverine Worldwide announced on Thursday that its subsidiary Keds has sold its Champion trademarks for footwear in the United States and Canada to its long-time licensee HanesBrands for $90 million in cash.
As part of the agreement, the Rockford, Michigan-based footwear company said it will retain a "perpetual license" to continue using the Champion trademark on certain footwear, including the Keds Champion sneaker that has been a mainstay of its Keds brand for decades.
The transaction also successfully resolves outstanding litigation between the parties, Wolverine added.
“This transaction represents a unique opportunity to simplify our business model while at the same time securing a significant amount of cash at a meaningful multiple of future expected royalty streams,” said Brendan Hoffman, Wolverine Worldwide’s president and chief executive officer.
“Also, by retaining a perpetual license our Keds brand will continue to market and sell the iconic Keds Champion sneaker that its consumers have worn and loved for generations.”
Founded in 1883, Wolverine Worldwide is a footwear company whose portfolio includes Merrell, Saucony, Sweaty Betty, Sperry, Hush Puppies, Wolverine, Keds, Chaco, Bates, Hytest, and Stride Rite. Wolverine is also the global footwear licensee of Cat and Harley-Davidson.
In its most recent trading update, Wolverine recorded a 20% uptick in revenues for the first quarter, as strong demand for the U.S company's portfolio of brands outweighed continued supply chain challenges and macro headwinds.
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