Due to the increase in demand for casual shoes, Crocs Inc. (CROX.O) has disclosed that it would buy Heydude footwear brand for $2.5 billion.
The deal includes $2.05 billion in cash and $450 million in crocs shares issued to the CEO of Heydude, Alessandro Rosano.
Founded in 2008, Heydude, a private owned footwear brand brings about 43% of its sales from online channels.
The Chief Executive Officer of crocs, Andrew Rees said in a press release that with the acquisition of Heydude, another high-growth and highly profitable brand is added to the company’s portfolio. He added that Heydude’s comfortable and lightweight products are aligned to long-term consumer trends and are a profit fit for crocs.
Heydude will operate as a stand alone division after the transaction closes in the first quarter of 2022. Crocs said the deal would immediately be accretive to revenue, margins and earnings.