Heelys agrees to be acquired by Sequential Brands
Heelys agrees to be bought by Sequential Brands for $63.2 million
DALLAS (AP) -- Heelys said Monday it agreed to be acquired by Sequential Brands Group for $63.2 million, a move that could preserve the wheeled shoe maker.
The offer, worth $2.25 per share, is the second in three months for the Dallas company. In October, it agreed to sell its assets to a group led by the private equity firm Evergreen Group Ventures for $13.9 million in cash and then dissolve what is left of the company.
But Heelys said at the time it would consider other offers, and its board deemed the Sequential deal superior.
"The Sequential transaction represents an attractive outcome and is in the best interest of Heelys stockholders," said Tom Hansen, Heelys president and CEO.
Sequential CEO Yehuda Shmidman said there might be an opportunity to expand Heelys into a "global lifestyle brand."
Shares of the company closed Friday at $2.21, giving the offer a premium of 1.8 percent. In midday trading, Heelys traded at $2.21, unchanged. The stock has traded between $1.56 and $2.68 over the past year.
Shareholders will meet Thursday to vote on the offer. If approved, the transaction will close in the first quarter next year.
The announcement comes after years of declining sales of the company's roller shoes. Heelys here a hit among kids in 2006, but safety concerns and fading popularity of the fad led to an inventory glut and weakening financials.
Sequential Brands Group promotes, markets and licenses consumer brands including William Rast, People's Liberation and DVS Action Sports.
