Seeking Alpha

Crocs, Inc. (CROX)

  • 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)
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Company Description
Crocs Inc and its subsidiaries are engaged in the design, development, manufacturing, marketing and distribution of consumer products, which includes footwear and accessories for men, women and children. It sells it products through retail chains.