Saucony agrees to Stride Rite takeover
Saucony, Inc., a global supplier of performance athletic footwear, casual footwear, apparel, and accessories, has entered into a definitive agreement with The Stride Rite Corporation under which Stride Rite has agreed to acquire Saucony.
Stride Rite will pay $23 in cash for each share of Class A and Class B common stock of Saucony, representing a 19% premium to $19.32, the average of the Class A and Class B common stock closing prices on June 1, 2005, and a 17% premium to $19.60, which is the average of the last four weeks' closing prices of Saucony's Class A and Class B common shares. All outstanding options for Saucony common stock, whether or not vested, will be cashed out in the merger based on the $23 per share purchase price. The transaction is expected to close in the summer of 2005 and is subject to regulatory approval.
Saucony president and CEO John Fisher said: "The announcement of the merger agreement between Saucony and Stride Rite is the culmination of our strategic alternative review process announced last August. We believe that this transaction maximises value for Saucony shareholders. In addition, we are convinced that Saucony has found the correct acquirer to expand our market presence and accelerate the growth of our businesses. We believe that Stride Rite's and Saucony's complementary strengths will provide a stronger platform for growth and profitability. We thank our shareholders for their patience during our review process and look forward with enthusiasm to becoming part of the Stride Rite family."
