Wolverine World Wide, Inc. has announced that Keds, LLC, its wholly-owned subsidiary, has sold the Champion trademarks for footwear in the United States and Canada to its longtime licensee, HanesBrands Inc, for 90 million dollars in cash.
“This transaction represents a unique opportunity to simplify our business model while at the same time securing a significant amount of cash at a meaningful multiple of future expected royalty streams,” said Brendan Hoffman, Wolverine Worldwide’s president and chief executive officer.
Under the agreement, the company said in a release, Wolverine Worldwide retains a perpetual licence to continue using the Champion trademark on certain footwear, including the Keds Champion sneaker that has been a mainstay of its Keds brand for decades.
The company added that the transaction also resolves outstanding litigation between the parties.
“Also, by retaining a perpetual licence our Keds brand will continue to market and sell the iconic Keds Champion sneaker that its consumers have worn and loved for generations,” added Hoffman.