Crocs, Inc. (NASDAQ: CROX) today announced that it has sold certain assets of its Foam Creations business unit, located in Quebec City, Quebec to a Canadian corporation led by former Foam Creations founder, Andrew Reddyhoff.
The sale includes the certain Foam Creations manufacturing assets as well as finished inventory and raw materials. The business will continue to operate out of its existing facility in Quebec City, Canada and will retain 26 local employees. The Foam Creations business unit was previously responsible for the manufacture and sale of industrial goods under the Crocs corporate umbrella. The business will continue to produce a range of industrial products such as spa pillows and kayak seats but will not operate in the footwear industry.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented, “We are extremely happy we were able to divest this business to a trusted friend such as Andy Reddyhoff. We are confident his entrepreneurial vision and management expertise will drive this business to continued growth and success. This is really a win-win situation as this divestiture allows us to add strategic focus to our core business – Crocs brand footwear. We will maintain our sales and marketing office and retail store in Quebec City and will be expanding our presence throughout the country including the opening of additional Crocs branded stores in Montreal and Toronto.”
“I’m very pleased that we were able to acquire this business from Crocs,” stated Andy Reddyhoff. “It was important for us to retain the business’ key employees and customers and we are thrilled we have succeeded.”
About Crocs, Inc.
Crocs, Inc. is a rapidly growing designer, manufacturer and retailer of footwear for men, women and children under the Crocs™ brand.
All Crocs™ brand shoes feature Crocs’ proprietary closed-cell resin, Croslite™, which represents a substantial innovation in footwear. The Croslite™ material enables Crocs to produce soft, comfortable, lightweight, superior-gripping, non-marking and odor-resistant shoes. These unique elements make Crocs™ footwear ideal for casual wear, as well as for professional and recreational uses such as boating, hiking, hospitality and gardening. The versatile use of the material has enabled Crocs to successfully market its products to a broad range of consumers.
Crocs™ shoes are sold in more than 100 countries and come in a wide array of colors and styles. Please visit www.crocs.com for additional information.
Forward-Looking Statements
Certain information contained in this press release may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to obtain and protect intellectual property rights and other factors described in our annual report on Form 10-K under the heading "Risk Factors," and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.
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