Sequential Brands Group will acquire roller shoe firm Heelys Inc. for $63.2 million.
Under the terms of the merger agreement, Heelys’ shareholders will received $2.25 in cash for each share of Heelys common stock, according to a filing with the Securities and Exchange Commission on Monday.
Heelys, which has been losing money, makes footwear in which wheels are imbedded in each sole. The concept is similar to inline skates. The footwear firm had inked a deal to be acquired in October by Evergreen Group Ventures for $13.9 million, but that deal did not include cash and the plan was to liquidate the business. Under the new agreement with Sequential, Heelys gets to see the brand continue in operation even though it now has to pay a termination fee to Evergreen.
The acquisition is the first for Sequential since hiring Yehuda Shmidman, former Iconix chief operating officer, as its chief executive officer last month. While at Iconix, Shmidman was involved in many mergers and acquisitions initiatives.
Given that Sequential Brands is a brand management and licensing firm, it will take ownership of the intellectual property assets of Heelys once the deal has closed and continue the brand using a licensing model.