“These transactions are the latest actions in our ongoing effort to reshape our portfolio and target our most meaningful opportunities,” said Mike Stornant, executive vice president and chief financial officer of Wolverine Worldwide. “We continue to streamline our organisation and become more efficient so that we can direct greater resources into our growth brands, pay down debt, and enhance long-term shareholder value.”
Wolverine Worldwide has entered into a definitive agreement to sell the Hush Puppies trademarks, patents, copyrights and domains in China, Hong Kong and Macau to its current sublicensee, Beijing Jiaman Dress Co., Ltd., for approximately $58.8m.
The two companies have entered into a license and cooperation agreement providing for mutual engagement and brand stewardship of the Hush Puppies brand in the region. Wolverine will continue to own and operate the Hush Puppies brand throughout the rest of the world.
“Our strategic approach in China, Hong Kong and Macau is to focus on our biggest brands, and selling the Hush Puppies intellectual property in these countries is a part of this strategy,” said Chris Hufnagel, president and CEO of Wolverine Worldwide. “Hush Puppies remains an important brand in our portfolio, and we are committed to growing it through strong global licensing partnerships and expanding our connections with local consumers. We look forward to partnering with Beijing Jiaman Dress and to ensuring the global success of Hush Puppies.”
The company also completed the sale of its US Wolverine Leathers business to New Balance for approximately $6m in total proceeds. It continues to explore alternatives for the non-US Wolverine Leathers business.
Prior to this, it divested its brands Keds and Wolverine Leathers in a move that it said would contribute to $65m in cost savings by 2025.
