News of an upcoming CEO change and new investment at Crocs (CROX) sent CROX stock up more than 12% in Monday morning trading.
The maker of the one-popular colorful clogs said that CEO John McCarvel plans to retire around April 30 and that Crocs is looking for his successor. McCarvel became CEO at the troubled shoe-maker in 2010, Bloomberg notes.
In addition to management shift, Crocs said that Blackstone Group (BX) will invest $200 million in convertible preferred CROX stock. The Blackstone purchase of convertible preferred CROX stock will help fund additional buybacks of CROX stock.
Prior to Monday, CROX stock had fallen 7.4% since the start of the year.
A company official indicated that the increase share repurchase program will cut the number of outstanding common shares of CROX stock by 30%. The deal with Blackstone prohibits the investment firm from taking a stake of more than 25% in the company for a specified period.
Shares of BX stock rose modestly in Monday morning trading.