Bank of America provided an $80 million senior secured asset-backed credit facility and TCW Asset Management provided a $130 million term loan facility to support footwear manufacturer Rocky Brands’ acquisition of the performance and lifestyle footwear business of Honeywell International, including The Original Muck Boot Company and XTRATUF footwear brands. The credit facility bears interest at LIBOR plus 1.5% and the term loan bears interest at LIBOR plus 7%. The purchase price of the transaction was $230 million.
“With the acquisition of The Original Muck Boot Company along with the XTRATUF, Servus, NEOS and Ranger brands, we will greatly enhance our powerful portfolio of footwear brands and significantly increase our sales and profitability. We’re acquiring a well-run business with a corporate culture and a customer base similar to ours, which provides meaningful growth opportunities within our existing categories as well as an entrée into new market segments. Its innovative and authentic product collections complement our existing offering with minimal overlap, which will allow us to strengthen our wholesale relationships and serve a wider consumer audience. At the same time, we plan to leverage Rocky’s advanced fulfillment capabilities to improve distribution of the new brands to wholesale customers and accelerate direct-to-consumer penetration. I am incredibly proud of the success our organization has achieved over the past several years, and I am excited to build on our momentum as we begin this exciting new chapter for the company,” Jason Brooks, CEO and president of Rocky Brands, said.
“We are thrilled to be joining Rocky Brands,” Craig Reingold, president of Honeywell’s lifestyle footwear business, said. “This transaction will bring together many strong, beloved brands. As we look to the future, the combined entities provide our passionate associates with greater opportunities to serve our accounts and consumers who have come to love our brands. I could not be prouder of the team and their success in building our brands over the past several years. We look forward to a smooth integration and capitalizing on our collective experience, innovation and operational expertise to deliver outsized growth for years to come.”
B. Riley Securities served as financial advisor to Rocky Brands and provided its board of directors with a fairness opinion. Porter Wright Morris & Arthur served as legal counsel to Rocky Brands and Centerview Partners served as the financial advisor to Honeywell, with Crowell & Moring served as legal counsel.