- Cherokee (CHKE) -2.5% AH after agreeing to acquire footwear company Hi-Tec Sports International for $95.8M in a share purchase agreement.
- CHKE expects Hi-Tec to contribute ~$19M of licensing revenues and $7M in adjusted EBITDA during the first full fiscal year after the deal closes.
- Announcing preliminary Q3 results, CHKE sees EPS of $0.08 vs. $0.13 analyst consensus estimate on revenues of $6.5M vs $7.8M consensus; for FY 2017, CHKE sees EPS of $0.76 vs. $0.65 consensus on revenues of $32M vs. $33M consensus, which does not any potential impact of the Hi-Tec acquisition.
- To help fund the deal, CHKE says it plans to launch a public offering of an unspecified number of common shares.