News

Crocs Acquires Casual Footwear Brand HeyDude for $2.5 Billion

Investors, however, reacted negatively to the news

Published

2 years ago

December 28, 2021

VMSD Staff

Credit: Pe3check, iStock

Looking to expand beyond rubber clogs, Crocs (Broomfield, CO) has acquired casual footwear brand HeyDude for $2.5 billion.

Crocs will pay for the deal with $2.05 billion in cash and $450 million in company shares. As part of the transaction, Rick Blackshaw was hired to join HeyDude as Executive Vice President and Brand President. The former President of Sperry, President of Keds and Vice President/General Manager of the Chuck Taylor division of Converse will join Crocs’ executive leadership team and report to CEO Andrew Rees.

Crocs stock tumbled on the news, with shares falling 12 percent the day the deal was announced.

Founded in Italy in 2008, HeyDude is expected to tally $570 million in revenue this year, CNBC reports. Rees told the outlet that sales for the brand are forecast to be between $700 and $750 million in 2022.

Crocs has about 4600 full-time employees. Its market capitalization was $7.52 billion as of Dec. 27. The deal is expected to close in the first quarter of 2022.

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