Wolverine Worldwide of the US announced the sale of its US leather business to New Balance, and the intellectual property of Hush Puppies footwear brand in Greater China has been transferred to the company's current partner in the region.
In order to focus on developing its four largest brands, Wolverine Worldwide has entered into a definitive agreement with its current sub-licensee Hush Puppies in China, Hong Kong and Macau to sell the trademarks, patents and copyrights of the brand for nearly $58,8 million. However, the company will continue to own and manage Hush Puppies in the rest of the world. The deal is expected to close in the coming weeks.
Wolverine also announced that it has completed the sale of its U.S. leather business to New Balance. The deal was valued at about $6 million and the company continues to explore alternatives for its leather business outside the US.
“We continue to streamline our organization and become more efficient so that we can channel more resources into our growing brands, pay down debt and increase long-term shareholder value,” said Mike Stornant, Executive Vice President and Chief Financial Officer of Wolverine Worldwide.
These deals follow the recently completed Wolverine Worldwide sale of Keds footwear brand North American holding Designer Brands.