Cherokee Inc. will acquire footwear maker Hi-Tec Sports International Holdings B.V. for $96 million, the company announced on Monday.
The Sherman Oaks company, which owns a portfolio of apparel brands, will launch a public offering of shares of its shares to partly fund the acquisition. The purchase of Hi-Tec is expected to close by the end of the year.
“The acquisition aligns with our strategic focus of diversifying and building upon our active lifestyle portfolio as we continue to grow our global footprint,” Henry Stupp, chief executive of Cherokee, said in a prepared statement. “We are excited by the potential to further expand these brands into additional categories including apparel, accessories, wearables, outdoor products and more.”
Hi-Tec Sports manages several athletic, work and outdoor shoe brands, including Magnum, Interceptor and its own Hi-Tec label. The Amsterdam company distributes products in more than 80 countries and has e-commerce and retail partnerships with Nordstrom Inc., Amazon.com and Wal-Mart Stores Inc., among many others. Its Magnum brand holds contracts with numerous police, military and government organizations around the world.
Shares of Cherokee fell nearly 5 percent, or 50 cents, on Monday to close at $10 on the Nasdaq.