Industryweek 5876 Blackstone Invest 200 Million Crocs Shoes 0
Industryweek 5876 Blackstone Invest 200 Million Crocs Shoes 0
Industryweek 5876 Blackstone Invest 200 Million Crocs Shoes 0
Industryweek 5876 Blackstone Invest 200 Million Crocs Shoes 0
Industryweek 5876 Blackstone Invest 200 Million Crocs Shoes 0

Blackstone to Invest $200 Million in Crocs Shoes

Dec. 30, 2013
"We expect these initiatives to reduce volatility in both our common stock price and our shareholder base and provide a strong foundation to unlock long-term value for our shareholders," said Crocs chief financial officer Jeff Lasher.

NEW YORK -- Crocs Inc. (IW 500/499) said yesterday that the Blackstone Group is making a $200 million investment that will give it preferred stock and a 13% stake in the U.S.-based shoe company.

The stock will have a 6% cash dividend rate, and at any time after three years from the issuance date, if the closing price of Crocs common stock equals or exceeds $29 for a period of 20 consecutive trading days, then the preferred stock shares will convert into shares of common stock, the statement read.

The investment allows the private equity group to have two seats on the board of directors of the foam resin shoe company.

Crocs shares closed Friday at $13.33 dollars on the Nasdaq, where it is traded.

The leisure shoe company, founded in 1999 in Niwot, Colorado, is valued at $1.2 billion.

Eighteen months ago Crocs's shares were trading at $22 but suffered from the company's weak performance.

The Blackstone investment will allow Crocs to finance a $350 million stock repurchase program. Once complete, Crocs will have reduced its publicly traded common stock by 30%.

"We expect these initiatives to reduce volatility in both our common stock price and our shareholder base and provide a strong foundation to unlock long-term value for our shareholders," said Crocs chief financial officer Jeff Lasher.

For company CEO John McCarvel, who simultaneously announced his retirement in April, Blackstone's investment "is a vote of confidence in our company and our brand" despite mixed financial performance.

Crocs has grown since its founding 14 years ago into a company that employs 4,500 people and sells more than 55 million shoes a year in more than 90 countries.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

Four Common OT Cybersecurity Pitfalls for Manufacturers

April 4, 2023
For the last six years, Dragos has leveraged their Professional Services team to develop an on-the-ground understanding of the realities facing the industrial community and to...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!