Footwear company Wolverine Worldwide recently purchased premium women’s activewear brand Sweaty Betty for $410 million.
Wolverine purchased Sweaty Betty through a deal with private consumer equity firm L Catterton and expects the acquisition to boost its revenue significantly, with its share values up 1.4% since the purchase, according to a press release obtained by CNBC News.
“Sweaty Betty aligns perfectly with our strategic growth plan for Wolverine Worldwide, as we focus on growing digital channels, expanding our international footprint and building our brand portfolio beyond footwear,” Brendan Hoffman, Wolverine President and incoming CEO, said in the release.
Sweaty Betty CEO Julia Straus will retain her position and will report directly to Hoffman.
Wolverine’s “portfolio of purpose-driven heritage brands, knowledge and expertise in building performance brands, robust international distribution, and supply-chain expertise provides a strong platform to expand Sweaty Betty and further our mission to empower more women through fitness all over the world,” Straus said in the release.
The purchase will add Sweaty Betty’s presence in the women’s premium activewear market to the company's extensive portfolio.
Wolverine Worldwide recently announced a record fiscal second quarter with total direct-to-consumer revenue up more than 17% compared to last year and up 69% from 2019.
Wolverine Worldwide is an American footwear manufacturer founded in 1883 by G.A. Krause and based in Rockford, Mich. Wolverine Worldwide's shoe brands include Merrell, Sperry, Stride Rite and Saucony.
Originally established in the UK in 1998 as a digital-first company, Sweaty Betty now has 65 stores in the U.K. and Hong Kong and is projected to earn $250 million in revenue this year. The company sells its products in the U.S. through a partnership with Nordstrom.
“I’ve always lived an active life,” Sweaty Betty founder Tamara Hill-Norton says on the company's website. “My dad was in the Navy and we traveled around a lot, doing lots of water sports and skiing. When I moved to London after university I wanted to continue this lifestyle, but there wasn’t much on offer for women.”