Kellwood to Acquire Royal Robbins for $40 Million
SportsOneSource Media Posted: 6/19/2007
Kellwood Company signed an agreement to acquire Royal Robbins, Inc., a division of Phoenix Footwear Group, Inc. In October 2003, the company was acquired by Phoenix Footwear. Sales for Royal Robbins in calendar year 2006 were approximately $30 million. The transaction is expected to close by early July. Kellwood is purchasing Royal Robbins for approximately $40 million. The Company does not anticipate the acquisition will significantly impact 2007 results.
Phoenix Footwear expects to report a net pre-tax gain of approximately $23 million on the sale including transaction costs. Phoenix Footwear acquired Royal Robbins on October 31, 2003 for a total of $11.7 million...
Phoenix has been talking about a deal like this for at least two quarters. After all, its Phoenix FOOTWEAR and the company was never able to successfully extend the Royal Robbins brand into the footwear category, in spite of talking about it for the past three years.