Converse sold to Footwear Acquisition group for $117.5 million
Following on from its Chapter 11 bankruptcy filing in January, the US athletic shoemaker, Converse Inc., has been sold for $117.5 million to Footwear Acquisition Inc. – an investment group specialising in the development of footwear brands.
In purchasing Converse, which is best known for its ‘All-Star’ brand sneakers, Footwear Acquisition successfully fended off a rival bid from a group that included American Sporting Goods Corp. which wanted to add the world-famous brand to its existing stable of Avia, Nevados and Turntec ranges.
American Sporting Goods’ request for extra time to investigate Converse’s finances and fine tune its offer was turned down by the federal courts, which concluded that Footwear Acquisition’s offer was the only legitimate bid for the Massachusetts-based company. Footwear Acquisition is led by Marsden Cason, William Simon and Perseus Acquisition/ Recapitilization Fund, L.L.C. Cason and Simon have extensive experience owning and operating branded sporting goods companies, and were responsible for turning around the fortunes of The North Face, Inc., taking the company public in 1996. Perseus Acquisition/Recapitalization Fund, L.L.C. is a private equity fund formed to back successful management teams
Converse sought bankruptcy protection in January, listing $202 million in assets and about $226 million in debt.
