- Marjorie van Elven |
Colorful clogs brand Crocs Inc. has entered into an agreement with Blackstone Capital Partners to repurchase 50 percent of its stake in the company. Blackstone invested 200 million US dollars in Crocs in 2014, which included the purchase of approximately 13. 8 million shares of the company’s common stock. Now, Crocs will be paying 183.7 million US dollars to buy half of those stocks back. Blackstone has agreed not to sell or transfer its remaining stocks to a third party for at least nine months.
Commenting on the transaction, Crocs’ President and Chief Executive Officer, Andrew Rees, said in a statement: “In the years following Blackstone’s investment, the Company has materially strengthened its brand, improved its operations and returned to growth, and we appreciate the support Blackstone has provided all along the way as one of our largest stakeholders”.
Prakash Melwani, Senior Managing Director at Blackstone and Crocs Board member, added: “We made our 2014 investment in Crocs because we believed in the potential of the Crocs brand and business. Today, we continue to believe in the Company’s strong future. After this transaction, we will become sizable common stockholders in Crocs to allow us to continue to participate in its anticipated growth”.