Sequential Brands Group has entered into an exclusive, long-term global agreement to license Heelys footwear to BBC International after the closing of its contract for the takeover of the American brand of wheeled footwear. If approved by shareholders, the transaction will close in the first quarter of 2013.
Among other benefits, BBC's strength in the children's shoe market, particularly in the U.S., could help broaden its distribution in this segment.
Based in Boca Raton, Florida, BBC International specializes in the development and sale of children's and skate shoes and distributes its products in the U.S. and abroad. It has contracts with skate brands such as Airwalk, Osiris and NSS.
It also has several other licensing deals with companies such as Polo Ralph Lauren, Disney and Guess? Based in Los Angeles, Sequential owns and licenses out consumer brands such as People's Liberation, DVS Action Sports and William Rast, the clothing company founded by Justin Timberlake.
In early December, Sequential announced that it had entered into an agreement for the takeover of Heelys, the Texas-based company known for its shoes with removable wheels in the heel. Under the agreement, Sequential will acquire all the outstanding shares of Heelys for $2.25 per share in cash, or a total of approximately $63.2 million.
That's much more than the price of $13.9 million that had been offered by The Evergreen Group Ventures and TEG Bronco, but much less than the $143 million that Skechers had unsuccessfully put on the table for Heelys in 2008.