Crocs (NASDAQ:CROX) stock isn’t doing so hot on Thursday after the footwear company announced a massive $2.5 billion deal for HEYDUDE.
Crocs plans to use a mix of cash and stock to fund its acquisition of HEYDUDE. This will have it paying a total of $2.05 billion and $450 million worth of stock for the company. It will enter into a $2.0 billion Term Loan B Facility and borrow $50 million from its existing Senior Revolving Credit Facility to fund the deal.
Andrew Rees, CEO of Crocs, said the following about the deal for HEYDUDE in a recent press release.
“We believe HEYDUDE’s casual, comfortable and lightweight products are aligned to long-term consumer trends and are a perfect fit for Crocs. We intend to leverage our global presence, best-in-class marketing and scale infrastructure to build upon HEYDUDE’s strong foundation and create significant shareholder value.”
HEYDUDE is a casual footwear brand that will operate as its own division once the deal is complete. This will see founder Alessandro Rosano lead that division as part of the Crocs team. The deal is set to close in Q1 2022.
CROX investors don’t appear too happy about the deal as shares are slipping today. We’re also seeing heavy trading with some 6 million units on the move as of this writing. That’s well above the company’s daily average trading volume of about 1.4 million shares.
CROX stock is down 13.9% as of Thursday afternoon but is still up 95.5% since the start of the year.
Investors looking for more stock market news to sink their teeth into today are in luck!
We’ve got all the most recent stock coverage that traders need for Thursday. A few examples include Ortho Clinical Diagnostics (NASDAQ:OCDX) soaring higher on acquisition news, JD.com (NASDAQ:JD) stock slipping thanks to Tencent (OTCMKTS:TCEHY), as well as what has casino stocks up today. You can get up to speed on all of that at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
