Rocky Shoes & Boots signs definitive agreement to acquire EJ Footwear Group
America’s Rocky Shoes & Boots Inc - that designs, develops, manufactures and markets rugged outdoor, occupational, and casual footwear, as well as branded apparel and accessories -has announced that it has signed a definitive agreement for the acquisition of EJ Footwear Group - a designer, developer, marketer, and licensee of branded footwear products.
The intention to acquire the company had previously been announced by Rocky, although no specific details were published. It has now been announced that Rocky will acquire 100% of EJ Footwear for $87.7 million in cash plus 484,261 shares of Rocky common stock, which were valued at $10 million at the date of the definitive agreement.
Mike Brooks, chairman and CEO of Rocky Shoes and Boots, stated, "We are extremely excited about joining forces with the EJ Footwear Group. With this acquisition, we will more than double the size of our business, further diversify our operating platform, reduce seasonality, and significantly enhance our prospects for growth. This deal represents a landmark event in the history of our company and we are fully committed to capitalizing on the many opportunities we have now created in the marketplace."
Based on a successful and timely completion of the transaction, the company expects fiscal 2005 combined revenues to range from $280 million to $285 million and combined earnings per share to range from $2.35 to $2.45.
