New York (HedgeCo.Net) – An affiliate of hedge fund investor giant Blackstone has acquired $200 million in newly issued series A convertible preferred stock in innovative casual footwear company Crocs, Inc.
In connection with the investment, Crocs announced that it intends to revise its capital structure to accommodate a $350 million stock repurchase program approved by its board of directors.
Blackstone will be entitled to two seats on the Crocs board of directors.
“We expect Blackstone to contribute a great deal of value to our board through its financial, consumer, retail and brand experience and its global footprint,” Thomas J. Smach, Crocs chairman of the board, said. “While Blackstone’s investment will represent only 13% as-converted ownership at closing, we believe our company, shareholders, and employees will benefit.”
In its fourth quarter 2013 outlook, Crocs says revenue stands around $220 million. The CEO, John McCarvel, also announced his intention to retire in April, 2014.
“Blackstone sees tremendous opportunity in the Crocs brand and global franchise. The company has the infrastructure and products to enable continued growth across the wide range of geographies and channels through which it operates. Prakash Melwani, Senior Managing Director and Chief Investment Officer of Blackstone’s Private Equity Group said, “We believe our consumer and retail investing experience coupled with the network of value-added resources within Blackstone will make us a strong partner for Crocs. We look forward to working with the Crocs Board to deliver compelling long-term value to the company’s shareholders.”
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