Crocs Inc CROX is trading lower Thursday after the company announced the acquisition of privately-owned casual footwear brand HEYDUDE for $2.5 billion.
The $2.5 billion will be funded with $2.05 billion in cash and $450 million in Crocs shares. The transaction is expected to close in the first quarter of 2022.
"With the acquisition of HEYDUDE, we are thrilled to add another high-growth, highly profitable brand to our portfolio," said Andrew Rees, CEO 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."
Founded in Italy in 2008, HEYDUDE designs comfortable, versatile and accessible footwear and accessories.
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Crocs is engaged in the design, development, marketing, distribution and sale of casual lifestyle footwear accessories for men, women and children.
CROX Price Action: Crocs has traded as high as $183.88 and as low as $58.97 over a 52-week period.
The stock was down 11.8% at $123.30 at time of publication.
Photo: Jinho Jung from Flickr.
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