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Wolverine Worldwide CEO Blake Kreuger on acquiring Collective Brands, which owns major apparel and footwear brands like Sperry and Stride Rite.
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Company Wolverine World -- sticking a big news staff in acquiring a large piece of this company called Collective Brands.
It's a holding company behind names I know you all alone Sperry top sider may -- Saucony Stride -- and surely we've all -- the pair of cats in -- life right.
Joining me now live from Grand Rapids, Michigan Blake -- he's chairman and CEO.
Of Wolverine World Wide.
Up like -- standard and think it's very top -- that's that's a really cool brand that's been around for a long time and they last for ever.
You took this one you took along Saucony what was it about this company collectively.
That you said I want in on this piece.
Well we like brands with a hair can -- you if you look at these four brands Sperry top sider Saucony Stride -- in can't.
Collectively they have 380.
Years of heritage they've been -- collectively around that law.
Sperry of course right now is white hot.
Sperry is white hot in the United States it's primarily a US brand right now tremendous international opportunity for spare.
You know what Saucony I did not know they've been around since 1898.
-- you talk about a lot of time.
On the store shelves there Keds 1916.
That came out with their first one that so many of us have seen before the champion.
Sperry 1935.
-- -- -- raises thirty years -- you can add another thirty years there and they last forever.
But but look at the price that you paid about 21 dollar 75 cents per share of the piece of Collective Brands that you are buying.
Accretive next year by about 25 cents to forty cents so I I'm beyond that -- less interested in that more interested.
In how quiet you wanted this to be so that you didn't wake up any other brands that might have been looking to acquire this how can pull this merger off how long -- the talks -- Was it to quite honestly it was challenging.
Collector brands had to pay less business and then it had appealed G group that had the four brands where -- wanted.
So we partnered with the golden gate -- capital and Blum capital.
And made a joint bed.
And that closing they're going to end up with the retail pay less business.
And as you know golden gate capital has a lot of retail business California Pizza Kitchen express they've had many deals over the year while we wondered where these heritage brands.
It was a long drawn out process but.
We stuck with that they had it was very good news in Grand Rapids this morning.
Aren't sure you guys are known as having one of the best supply chains globally you can get shoes to any city -- meantime here -- 190 countries so how soon.
Will we start to see things like Sperry top siders and Socrates on the shelves in Russia or -- not mean anywhere that they might not be in big numbers right now.
Now when -- we look at our brand portfolio that we currently have when you look at Caterpillar footwear.
Merrill hush puppy we've got each of those three brands in about a 150 countries.
Around the world and that's kind of the upside potential we see certainly for Sperry.
Saucony is a little bit wider distributed.
And -- and -- greater still USA only.
Great brands.
Great management teams and great creative departments so are you saying that's very wouldn't go out worldwide just yet.
I think they've been trying like everybody in today's world you have to the more markets you Selanne.
The last inherent business risk you're taking on in your business.
But for us we've been -- since 1959.
We have those establish relationships distributors we know them we know their families.
And we've been in business with them for 203040.
Years so we can take a group -- brands like this.
Plug and play it put it -- -- our system and get some immediate international distribution.
What about one quick question to finish out Crocs church have up bugs -- casual footwear.
Is a very competitive businesses you know how will you be these guys back and sort of become that leader.
Well the first thing you do is buy art collection -- Branson has Sperry and it Sperry as the number one casual brand across men's and women's in the United States.
And they -- and they have great momentum that continues.
Like Krueger's CEO of Wolverine worldwide -- might expect to outsiders or thirty years old and they're not even that nasty hey congratulation new fair.
-- -- -- The ones they're really gross but they're really amazing time.
Try a new one thanks very much closing bell ringing in about 49 minute.
