Payless Shoesource Inc. said Tuesday it was acquiring The Stride Rite Corp. for $800 million plus debt.
The all-cash deal represents $20.50 per share, and follows Payless’ acquisition of Collective International LP, owner of Airwalk and Vision Street Wear, earlier this year.
As part of the Stride Rite deal, the company will remain itself Collective Brands Inc. and operate three separate operating divisions: Collective Licensing, Payless ShoeSource and Stride Rite.
Matt Rubel, Payless’ chief executive officer and president, will serve as the ceo of the parent company, Collective Brands.“Our goal was to really use the infrastructure of Payless to go after new businesses in the footwear industry separate from Payless,” Rubel told WWD. “Stride Rite was squarely positioned — it has casual and athletic footwear, and is a premium leader in children’s. The new platform will have three distinct entities.”
“The infrastructure and cash flow from Payless Shoe Source will support the growth [of the three operating units],” Rubel said.