Acquisition Launches Payless Into New Growth Area of Brand Development
Management and Licensing; Supports Retailer's House of Brands Strategy with
Leading Youth Lifestyle Brand, Airwalk(R), Among Top Brands in Transaction
TOPEKA, Kan., March 30 /PRNewswire-FirstCall/ -- Payless ShoeSource
(NYSE: PSS) announced today it has closed its previously announced
acquisition of Collective International, LP, a Denver-based brand
development, management and licensing company. The purchase price of the
all-cash transaction was approximately $91 million, excluding transaction
costs and remains subject to customary purchase price adjustments to
reflect current assets and total liabilities.
Collective's focus is on the growing active sport lifestyle market
driven predominantly by board-sport inspired trends from surf, skateboard,
and snowboard sports. Collective will operate as a wholly-owned subsidiary
headed by Collective's President and CEO Bruce Pettet and staffed by
Collective's design and licensing team. The subsidiary will continue to
manage it's strong brand portfolio including Airwalk(R), Vision Street
Wear(R), Lamar(R), Sims(R), LTD(R), genetic(TM), Dukes(R), Rage(R),
Ultra-Wheels(R), and Skate Attack(R) and has plans for portfolio expansion
as well.
Payless has been a licensee of the Airwalk brand since 2003 and
features the brand on a wide range of footwear and accessories. Payless has
helped drive Airwalk to the number two skate footwear brand in America.
This acquisition establishes Payless in the brand management and
licensing business. The new business will provide growth opportunities
across multiple product categories in domestic and international markets to
create new revenue streams from wholesaling or licensing to other retailers
and third parties.
Payless ShoeSource, Inc., the largest specialty family footwear
retailer in the Western Hemisphere, is dedicated to democratizing fashion
and design in footwear and accessories and inspiring fun, fashion
possibilities for the family at a great value. As of the end of the fourth
quarter 2006, the company operated a total of 4,572 stores. In addition to
its stores, customers can buy shoes over the Internet at
http://www.payless.com .
SOURCE Payless ShoeSource, Inc.
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Related links:
http://www.paylessinfo.com
http://www.prnewswire.com/comp/136152.html/
CONTACT:
Media, Mardi Larson, +1-612-928-0202, or
mardilarson@aol.copm , or Financial, James Grant,
+1-785-559-5321, both of Payless ShoeSource, Inc.
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