Wolverine, Blum and Golden Gate acquire Collective Brands

Wolverine Worldwide, Blum Capital and Golden Gate have

formed an acquisition company that is acquiring Kansas-based Collective Brands. Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital have entered into a definitive agreement under which Collective Brands will be acquired for $21.75 per share in cash, including the assumption of debt. The purchase price represents a 104% premium to the 30-day volume weighted average trading price prior to the August 24, 2011, announcement that Collective Brands’ board of directors, together with the management, would conduct a review of strategic and financial alternatives.

Wolverine Worldwide will acquire Collective Brands’ Performance + Lifestyle Group (PLG), which includes the wholesale and retail operations of the Sperry Top-Sider, Saucony, Stride Rite and Keds brands, and will continue to operate out of Lexington, Massachusetts. PLG had revenue of more than $1 billion in the fiscal year ended January 31, 2012.

Investment firms Blum Capital and Golden Gate will jointly acquire the operations of Payless ShoeSource and Collective Licensing International (CLI), which together will operate as a standalone entity. Payless will continue to be headquartered in Topeka, Kansas, and CLI in Englewood, Colorado. Payless and CLI had combined revenue of approximately $2.4 billion in the fiscal year ended January 31, 2012, operating over 4,300 Payless retail stores globally at year end.

Collective Brands is the holding company for Payless ShoeSource. It has brands such as Dexter, Airwalk, Champion, Above the Rim and Smartfit. Wolverine World Wide are marketers of branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. The company’s portfolio of brands includes Merrell, Hush Puppies, Wolverine, Sebago, Cushe, Chaco, Bates, HYTEST and Soft Style. Blum. Capital Partners is a San Francisco-based public strategic block and private investment firm with approximately $2 billion of equity capital under management. Golden Gate Capital is a San Francisco-based private investment firm with approximately $12 billion of capital under management.