Crocs Acquires Hey Dude Shoes
Crocs Inc. announced its largest acquisition to date of privately-owned casual footwear brand Hey Dude Shoes. The deal, expected to close in Q1 2022, is valued at $2.5 billion.
The acquisition is the latest in Crocs’ efforts to increase its digital growth, as well as reach a $5 billion goal in sales by 2026. “This [goal] remains unchanged,” said CEO and director Andrew Rees during a Dec. 23 investor call.
“[Hey Dude Shoes’] scaled position in casual footwear more than quadruples the Crocs total addressable market to over $160 billion,” Rees said during the call, adding that Crocs expects the combined 2022 total revenue to be more than $3.4 billion on a pro forma basis. This would make Crocs, “the second-largest branded player in the casual footwear category globally,” Rees said. (Pro forma financials do not include one-time expenses as occurs during a merger or acquisition.)
