Wolverine sells Keds brand to Designer Brands, no terms given

Wolverine World Wide (WWW) that it has sold the Keds brand to Designer Brands (DBI), the parent company of footwear retailer DSW. In addition, the Company announced that it intends to grant an exclusive license to DBI for Hush Puppies footwear in the United States and Canada, where DSW has been the exclusive retail partner for Hush Puppies since last year. Selling Keds and licensing the Hush Puppies brand for the United States and Canada is an important step as we continue to advance our strategy to simplify the portfolio and direct resources to our growth brands. We are confident this will place Wolverine on an accelerated path to improved profitability and long-term shareholder value creation," said Brendan Hoffman, Wolverine Worldwide’s President and Chief …The proceeds will be used to pay down debt and strengthen our capital structure," added Hoffman. The Keds brand sale closed effective February 4,, and the Hush Puppies license is anticipated to be effective as of July 1. The Company will provide more information on the impact of these transactions in its upcoming earnings call scheduled for February 22. The Company also noted that its evaluation of strategic alternatives for the Wolverine Leathers business is ongoing.