Dec. 30, 2013, 2:44 AM
- Blackstone (BX) has agreed to pay $200M to acquire a 13% stake in Crocs (CROX), the latter said late yesterday, adding that CEO John McCarvel will retire at the end of April.
- Blackstone will receive newly issued preferred equity that it can convert into common shares at $14.50 each vs Friday's close of $13.33, and which will have a cash dividend rate of 6%. The private-equity firm will also receive two board seats.
- Crocs will use the proceeds to help pay for a $350M repurchase program; along with Blackstone's investment, the buyback will reduce the footwear maker's publicly traded common stock float by 30%.
- Blackstone's investment comes after Crocs' Q3 profit dropped 71% to $13M on revenue of $288.5M. The company expects Q4 earnings to be at the low end of its guidance range for a loss per share $0.20-0.23 - meaning the loss will be greater - and for revenue of $220-225M. Analysts predict $0.19 and $222.25M respectively. Crocs will also take charges of $47-52M in Q4 and may need to carry out further restructuring in 2014. (PR)