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Sanuk is selling to Deckers Outdoor Corporation, a publicly traded footwear company and the parent company of the respected UGG brand, Deckers announced today.
Deckers will pay $120 million in cash, and possibly more based on a five-year earn out agreement. The deal is expected to close in the third quarter, and senior Sanuk management will continue to manage the brand, according to the press release.
Deckers CEO Angel Martinez said the Sanuk brand has “true global lifestyle potential,” in a statement.Dac Clark, co-owner of C&C Partners. C&C helped Sanuk leverage its potential with financial backing and operational expertise. Shop-eat-surf file photo.
The acquisition is the second industry acquisition to be announced this month. Just over two weeks ago, French luxury company PPR revealed it is acquiring Volcom.
Sanuk, the Thai word for happiness, is one of the hottest footwear brands in the surf market and recorded $43 million revenue in 2010, according to the release. The brand has been on a rapid growth curve, and is known for its creativity, sense of humor and for its product differentiation. In 2010, the company was on track to double sales when I interviewed executives in November, and they saw the potential to double yet again in 2011.
Founded by Jeff Kelley in 1997, the brand is owned by Jeff and partner Ian Kessler. Jeff is the creative force behind the brand, and is known for his out-of-the-box ideas, such as the Sidewalk Surfer, the Yoga Mat sandal and the Fur Real sandal.
The Sidewalk Surfer
Dac Clark and Paul Carr of C&C Partners, have the license for Sanuk in the U.S., Canada and Europe. Their operational and infrastructure expertise, and their financial relationship with CIT, helped Sanuk manage its rapid growth. Jeff had turned to C&C for help growing the business when there was no more equity left in his home to tap.
Previously, C&C had the license for Gotcha, Rusty and Redsand. Currently, it is a partner in the well-regarded swim line *L Space.
John Vance, Chief Operating Officer, runs day-to-day operations at Sanuk.
The Deckers release did not specify how the proceeds from the sale would be divided between the Sanuk trademark owners – Jeff and Ian - and C&C, which runs the business side of things.
Moss Adams Capital, LLC acted as financial advisors to both Sanuk and C & C in the transaction.
See Page 2 for more