K-Swiss and E.Land World Ltd. has announced that they have signed a merger agreement. The terms of agreement stated that all common stock of California’s K-Swiss will go to E.Land World Ltd. for $4.75 per share, a total value of about $170 million, in cash.
E. Land World Limited is the largest conglomerate headquartered in South Korea. They not only specializing in fashion and retail but also restaurants, theme parks, hotels and construction businesses. The company offers about 200 brands and operates more than 10,000 stores worldwide.
“We are thrilled to be adding the K-Swiss and Palladium brands to E.Land Group’s portfolio,” said SungKyung Park, president of E.Land World. “K-Swiss is a well-established international sports brand and we are very excited about the tremendous potential both the K-Swiss and Palladium brands bring to our proven global platform. We look forward to investing in the company and building upon its heritage.”
Many shoppers are familiar with K-Swiss’ first “Classic” all-leather shoe and a variety of their other sports products. They design and market footwear under the palladium brand. Their goal was to be the most inspiring sports brand, bringing something new to the market. The company now expanded their performance and lifestyle footwear and apparel from tennis footwear, to lifestyle, running, training, nautical and free-running footwear that meets that standards to world-class athletes and trendsetters.
The merger is expected to close during the second quarter of 2013, with a required approval of 80% of K-Swiss’ voting, regulatory approvals and other customary closing conditions. E.Land World will pay $4.75 for each outstanding class A and class B share of K-Swiss common stock owned portraying a 49% premium over the closing price for each class A common stock and a 62% premium over the three-month, volume-weighed average trading price on the NASDAQ Stock Market on January 16, 2013.
Steven Nicols, Chairman of the Board and President of K-Swiss, said, “We are excited to enter into this transaction with E.Land as we believe it is in the best interest of K-Swiss and our stockholders. E.Land has a 30-year record of successfully building a global fashion and retail conglomerate and also shares our culture of valuing associates. I believe that such a platform will provide K-Swiss with the resources and scale to return to its former performance levels and to further maximize Palladium’s potential.”
By Pia Talwar