Milwaukee-based Weyco Group Inc. has acquired the outstanding shares of The Combs Company, the owner of the BOGS and Rafters footwear brands.
The purchase price was $29.4 million in cash at closing, plus about $3.5 million in assumed debt and contingent payments after two and five years, dependent on Bogs achieving certain performance measures. The transaction was funded with available cash and borrowing from Weyco’s revolving line of credit.
Bogs’ sales for its most recent fiscal year were approximately $27 million. Weyco 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 it as president. Sue Combs will become its manager of design and development. Dustin and Riley Combs will each stay on as vice presidents of sales.
"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 Weyco. "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."
Milwaukee-based Cleary Gull Inc. served as financial advisor to Weyco in the transaction.
