Wolverine World Wide, based in Rockford, Michigan, announced strategic moves on Monday to optimize its brand portfolio. The company is set to sell a 40% stake in the Saucony intellectual property in China and divest its Asia-based Wolverine Leathers business.
In a groundbreaking agreement, Wolverine World Wide will sell a minority ownership interest in the entity holding the Saucony intellectual property in China to Xtep, its joint venture partner. Simultaneously, it will divest its equity interest in the Merrell and Saucony joint venture entities, amounting to a significant $61 million. This transition represents a shift from a joint venture to a license and distribution rights model, granting Xtep exclusive management of the development, marketing, and distribution of Saucony and Merrell products in China.
Concurrently, Wolverine Worldwide has entered a definitive agreement to sell its Asia-based Wolverine Leathers business to Interhides Public Company Limited for an approximate sum of $9 million. This strategic move follows the successful divestment of its U.S. Wolverine Leathers business to New Balance for around $6 million, achieving the company’s goal of shedding this segment.
Chris Hufnagel, President, and CEO emphasized, «We’ve taken fast, bold, and decisive actions to stabilize the Company today, while working to transform Wolverine Worldwide for the future.» These initiatives align with the company’s commitment to simplifying its business model, reducing costs, and fortifying its balance sheet. The strategic goal is to enter the new year with a clear vision, enhanced brand investment capabilities, and a robust position to deliver returns for shareholders.
These strategic moves follow earlier successful transactions, including the $90 million sale of Keds in February 2023 and the $58.8 million sale of Hush Puppies intellectual property in China, Hong Kong, and Macau in August 2023. The ongoing strategic alternatives process for the Sperry brand continues.
