Wolverine World Wide Disposes Sperry, Sold Brand to Authentic Brands Group

Wolverine World Wide Inc., an American footwear manufacturer, announced it has sold its Sperry Top-Sider brands to Authentic Brands Group, which already owns Forever21, Reebok, Nautica, Quiksilver, and more. On Thursday, Jan. 11, the company said that it decided to dispose of the brand to focus on its better-performing assets.

Sperry’s New Operator in North America

Authentic Brands said that its Canadian retail partner, the Aldo Group, will be operating Sperry in the North American region. The company designated Aldo to be in charge of store operations, wholesale transactions, and e-commerce, as per CNBC.

In addition, Aldo will also be involved with Sperry’s footwear design, production, and distribution around the world. The company has an extensive relationship with Authentic Brands, and they have been working closely for years; thus, it was easy for the latter to choose Aldo as its operating partner for Sperry in North America.

Wolverine’s Decision to Sell Sperry

Wolverine World Wide has owned the Sperry brand since 2012 after acquiring it from Payless ShoeSource owner Collective Brands for $1.23 billion. The deal also included other well-known brands such as Keds, Saucony, and Stride Rite.

In May, Wolverine’s former CEO, Brendan Hoffman, said that selling Sperry would allow the company to invest more resources in the company’s more popular brands like Merell. The firm will be able to expand Merrell’s lifestyle business and widen Saucony’s reach in various markets.

“It just became apparent that Sperry was going to continue to require investment that was going to take away from where we think the upside is,” Hoffman said at that time.

Other Information About the Sale Deal

Meanwhile, Wolverine World Wide further said that its sale announcement for Sperry builds on its previously-revealed asset monetization transactions that generated almost $250 million last year. For this sale deal, the company hired Centerview Partners, LLC, as financial advisors, while Honigman LLP and Warner, Norcross + Judd LLP are serving as its legal advisors.

“The sale of the Sperry brand is the next step in our turnaround and strategic transformation,” president and chief executive officer of Wolverine World Wide, Chris Hufnagel, said in a press release. “We conducted a rigorous process that considered a comprehensive set of strategic alternatives for the brand, and we believe this is the best outcome for the Company and our vision for the future.”

He added, “In a very short time, we have meaningfully reshaped Wolverine Worldwide – simplifying the portfolio, reducing our debt, and redesigning the organization to drive improved performance and profitability. I am excited about the next chapter in our turnaround – focused squarely on building consumer-obsessed global brands and delivering greater value for our shareholders.”

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