MANUFACTURING
Creative Recreation Footwear Acquired by Rocky Brands
The 11-year-old lifestyle footwear company Creative Recreation, based in West Hollywood, Calif., has been acquired by Rocky Brands for $11 million.
The acquisition, announced on Oct. 30, should be completed by the end of December 2013 and accretive to Rocky Brands’ revenues in 2014.
The acquisition will be funded by Rocky Brands’ existing cash balances and funds available from an existing revolving credit facility. Rocky Brands is a designer, manufacturer and marketer of footwear.
“We are very excited to add Creative Recreation to our strong portfolio of brands. The management team of Creative Recreation, led by founder and President Robert Nand, has done an excellent job identifying and serving a growing category in the footwear industry. We believe by combining Rocky’s strong operating platform and access to capital with Creative Recreation’s design expertise, we can strategically expand their business both domestically and overseas. At the same time, this transaction provides us with a compelling vehicle to penetrate the casual end of the market to complement our work,” said David Sharp, president and chief executive of Rocky Brands, a publicly traded company headquartered in Nelsonville, Ohio.
Rocky Brands’ footwear primarily falls in the Western and outdoor categories with such labels as Rocky, Georgia Boot, Durango, Lehigh and the licensed brand Michelin footwear.
Creative Recreation was founded in 2002 by Robert Nard and Rich Cofinco, who wanted to sell a versatile shoe that could be worn during the day or for more upscale events at night. They developed a line of high-end sneakers that ended up being sold at retailers such as Barneys New York and Nordstrom. At its peak, the company’s revenues were $40 million a few years ago.
“This acquisition represents a tremendous opportunity to join a great company with a long and successful history,” said Nand, who will stay on to run the company out of Los Angeles. Cofinco will be a consultant.
Intrepid Investment Bankers in Los Angeles acted as financial advisers to Creative Recreation’s parent company, Kommonwealth Inc., and Robert W. Baird in Milwaukee, Wis., acted as financial adviser to Rocky Brands.
