Cherokee Global Brands Announces Intent To Acquire Hi-Tec Sports International

SHERMAN OAKS, Calif., Nov. 28, 2016 (GLOBE NEWSWIRE) -- Cherokee Global Brands (NASDAQ:CHKE) ("Cherokee Global Brands", "CGB" or "the Company"), a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands, today announced that it intends to enter into a share purchase agreement to acquire Hi-Tec Sports International Holdings B.V. ("Hi-Tec"), a global footwear company.

Transaction Highlights:
  • The Hi-Tec business to be converted to a branded licensing model, consistent with CGB's strategy.
  • CGB has secured license agreements for core footwear categories that will strengthen and expand our presence in the United Kingdom, Continental Europe, The United States, Canada and South Africa.
  • Maintaining distribution agreements for core brands throughout the world including South and Central America and Asia.
  • Expects to add approximately $19 million of licensing revenue and $7 million in Adjusted EBITDA during first full fiscal year post-closing.
  • Adds significant, experienced growth-oriented wholesale operating partner licensees.
  • Dramatically expands global retail base to over 110 countries. 
  • Offers attractive cross-selling opportunities between CGB and Hi-Tec brand portfolios, including rapid expansion into apparel accessories and outdoor products.

Founded in 1974 and based in the Netherlands, Hi-Tec is a privately-held branded footwear company that designs, markets and sells footwear globally, primarily under the Hi-Tec and Magnum brands. Hi-Tec's brands are sold in over 110 countries, predominately in the United Kingdom, Continental Europe, the United States, Canada, South and Central America and Asia through major retailers, independent distributors, licensees and direct to consumers. In 2015, Hi-Tec recorded revenue of approximately $143 million (based on a 1.1 Euros to each U.S. dollar exchange rate, which represents the average exchange rate for calendar year 2015), on worldwide wholesale sales estimated by third-party research to be approximately $288 million, including products sold under the Hi-Tec and Magnum brands.  

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