Wolverine Worldwide sells stake in China Merrell, Saucony JV

The sale is valued at $61m.

American footwear retailer Wolverine Worldwide, Inc. has sold its equity stake in its joint venture (JV) for the Merrell and Saucony brands in China to its partner Xtep.

In a statement, Wolverine Worldwide said it signed a deal worth $61m with its JV partner Xtep to sell its share in their JV and speed up the option to sell its minority stake in the entity owning the Saucony intellectual property.

 Under the JV established in 2019, Xtep was provided with the option to acquire a 40% minority ownership interest of the segment that owns the Saucony brand intellectual property in China if under financial uncertainty. However, with the early success of Saucony in China, both entities have agreed to push through with the latter option.

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The new operating model for Merrell and Saucony sees Xtep utilise its resources in China and allows Wolverine to place more focus on brand-building and the development of new consumer-friendly products.

Meanwhile, the company will also sell Wolverine Leathers to Interhides Public Company for $9m.

“We’ve taken fast, bold, and decisive actions to stabilise the Company today, while working to transform Wolverine Worldwide for the future. Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet,” Chris Hufnagel, President and CEO of Wolverine, stated.