Global Footwear, Accessory and Lifestyle Brand Company Has Three
Complementary Business Units, Expanded Business Model and Strong Brand
Portfolio
Company Well-Positioned to Accelerate Long-Term Retail, Wholesale,
Licensing and E-Commerce Growth
TOPEKA, Kan., Aug. 17 /PRNewswire-FirstCall/ -- Payless ShoeSource,
Inc. (NYSE: PSS) announced today that it has completed the acquisition of
The Stride Rite Corporation and has officially changed its name to
Collective Brands, Inc.
"Collective Brands is built on the solid foundation of each business
unit's individual core competencies, expertise and heritage," said Matthew
E. Rubel, chief executive officer and president of Collective Brands, Inc.
"The new company will reach an expanded customer base with iconic brands
through its nearly 4,900-strong retail stores and vibrant wholesale,
licensing, and e- commerce channels. It will benefit from new efficiencies
and greater scale in all aspects of getting footwear and accessories to
market."
Collective Brands is a global footwear, accessory and lifestyle brand
company with leading, well-recognized brands, superior quality and on-trend
footwear, and accessory products offered through multiple channels. As one
of the largest footwear companies in the western hemisphere, Collective
Brands is organized with three highly complementary and separate business
units with distinct missions in terms of their product offerings,
distribution channels, brand portfolios, and target customer bases:
-- Payless ShoeSource: democratizing fashion and design in footwear and
accessories through its nearly 4,600 retail store chain. Brands sold
at Payless include Airwalk(R), American Eagle(TM), Champion(R),
Dexter(R), Tailwind(R) (through the Exeter Brands Group of Nike Inc.),
Disney(R), Shaquille O'Neal-endorsed Dunkman(TM), ABT for Spotlights,
and designer collections: Abaete for Payless, Lela Rose for Payless and
alice + olivia for Payless.
-- Stride Rite: centering on premium lifestyle and athletic branded
footwear and high-quality children's footwear sold primarily through
wholesaling arrangements and more than 300 retail store locations.
Brands owned or licensed by Stride Rite include Stride Rite(R),
Keds(R), Sperry Top-Sider(R), Tommy Hilfiger(R) footwear, Saucony(R),
Hind(R), and Robeez(R), among others.
-- Collective Licensing International: specializing in brand management
and global licensing of its portfolio of youth, lifestyle and
high-quality fashion athletic brands. Brands for Collective Licensing
include: 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).
While each unit will operate separately, the company will leverage core
competencies across the organization in areas such as product design and
development, global sourcing, distribution, inventory management, and
various corporate functions.
Collective Brands' competitive advantages include:
-- A diverse operating model with the ability to target specific customer
segments with branded products offered at a range of price points
through multiple channels.
-- The preeminent position in children's footwear both at the premium and
moderate level.
-- A stronger, more efficient organization with the scope and scale to
manage all aspects of getting to market -- from interpretations of
emerging trends, to design, development, sourcing, logistics and
distribution.
The acquisition of Stride Rite was approved by its shareholders at a
special meeting held on August 16, 2007, with 80.7% of its shareholders
voting in favor of the transaction. The transaction, valued at
approximately $900 million, consisted of an aggregate $800 million payment
to Stride Rite shareholders, option holders and other equity holders, as
well as the repayment of existing debt and other transaction costs. It was
financed with approximately $175 million in cash-on-hand and a $725 million
term loan B at a variable rate of currently 8.3% over 7 years.
David Chamberlain, chief executive officer for The Stride Rite
Corporation, has retired from day-to-day operations of the company and will
serve as an outside consultant to Matt Rubel. Richard Thornton will
continue to serve as president and chief operating officer of the Stride
Rite unit. Matt Rubel will continue to head the Payless ShoeSource unit,
and Bruce Pettet will continue to lead the Collective Licensing unit.
About Collective Brands, Inc. and Forward Looking Statements
Collective Brands, Inc. is the holding company of three business units:
Payless ShoeSource, Stride Rite, and Collective Licensing International. At
this time, Collective Brands, Inc. continues to trade under the symbol
(PSS). Payless ShoeSource is one of the largest footwear retailers in the
western hemisphere. It is dedicated to democratizing fashion and design in
footwear and accessories and inspiring fun, fashion possibilities for the
family at a great value. Stride Rite markets the leading brand of
high-quality children's shoes in the United States. The unit also markets
products for children and adults under well-known brand names, including
Keds, Sperry Top-Sider, Saucony, Tommy Hilfiger Footwear, and Robeez.
Collective Licensing International is a leading youth lifestyle marketing
and global licensing business. Information about, and links for shopping
on, each of Collective Brands' units can be found at
http://www.collectivebrands.com.
This release contains one or more forward-looking statements.
Forward-looking statements are identified by words such as "will," and
other similar words. A variety of known and unknown risks and uncertainties
could cause actual results to differ materially from the anticipated
results which include, but are not limited to: the risk that the businesses
will not be integrated successfully or will take longer than anticipated;
the risk that the expected cost savings will not be achieved or unexpected
costs will be incurred; the risk that customers will not be retained or
that disruptions from the transaction will harm relationships with
customers, employees and suppliers; costs and other expenditures in excess
of those projected for environmental investigation and remediation or other
legal proceedings; changes in accounting treatment of any financings;
changes in consumer spending patterns; changes in intellectual property,
customs and/or tax laws; litigation, including intellectual property and
employment litigation; and the ability to hire and retain associates. In
addition, other risks and uncertainties not presently known to us or that
we consider immaterial could affect the accuracy of our forward-looking
statements. Please refer to Collective Brands' 2006 Annual Report on Form
10-K for the fiscal year ended 2006 for more information on these and other
risk factors that could cause actual results to differ. Collective Brands
does not undertake any obligation to release publicly any revisions to such
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
SOURCE Collective Brands, 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,
financial, James Grant, +1-785-559-5321, both of Collective
Brands, Inc.
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