MILWAUKEE, March 2, 2011 /PRNewswire/ -- Weyco Group, Inc. (Nasdaq: WEYS) (the "Company") announced today that it has acquired 100% of the outstanding shares of The Combs Company ("Bogs"), the owner of the BOGS and Rafters footwear brands.
The purchase price was $29.4 million in cash at closing, plus assumed debt of approximately $3.5 million and contingent payments after two and five years, which are dependent on Bogs achieving certain performance measures. The transaction was funded with available cash and borrowings under the Company's revolving line of credit.
Bogs' sales for its most recent fiscal year were approximately $27 million. The Company expects the acquisition to be accretive to earnings in 2011, excluding the impact of certain purchase accounting adjustments as well as transaction and integration costs.
Bill Combs, the Founder and CEO of Bogs, will remain with BOGS as President - BOGS/ Rafters. Sue Combs will become the Manager of Design and Development – BOGS/Rafters. Dustin and Riley Combs will each stay on as Vice Presidents of Sales - BOGS/Rafters."We are excited to announce the addition of BOGS and Rafters to Weyco Group's portfolio of brands," stated Tom Florsheim, Jr., Chairman and CEO of the Company. "These brands fit well into our strategy to diversify our product mix and enhance our share of the casual footwear market. Bill Combs brings a lifetime of experience to our Company, and, along with him and his family, we look to develop and grow this business to its fullest potential." "From our initial meeting, it was clear that Weyco and I shared the mutual goal of growing Bogs to its fullest potential," said Bill Combs, Founder and CEO of Bogs. "Bogs is a company built on a foundation of quality products and customer service that exceed our partner dealers', vendors', and consumers' expectations. With Weyco providing a modern distribution center, superior systems, administrative functions and capital, we can continue our rapid growth and take our customer service to an even higher level. Bogs is a family business. We are honored to join another family business with such a tremendous history in the shoe industry." The Company was represented in this transaction by Cleary Gull Inc. as financial advisor.