Footwear company Wolverine Worldwide buys Lululemon competitor Sweaty Betty for $410 million
Sweaty Betty athletic clothing shop in London.
Jeff Greenberg | Universal Images Group | Getty Images
The company behind Merrell, Saucony, Sperry, Stride Rite and other well-known footwear brands is adding premium women’s activewear brand Sweaty Betty to its portfolio as it expands its categories, geographies and online sales.
Wolverine Worldwide bought the 23-year-old digitally native Lululemon competitor for $410 million from consumer-focused private equity firm L Catterton. The deal, which closed Monday, was funded by cash and a revolving line of credit.
In a press release Tuesday, Brendan Hoffman, the incoming chief executive officer and current Wolverine Worldwide president, said, “Sweaty Betty aligns perfectly with our strategic growth plan for Wolverine Worldwide, as we focus on growing digital channels, expanding our international footprint, and building our brand portfolio beyond footwear.”
Sweaty Betty Chief Executive Julia Straus will stay on and report to Hoffman. In the release, Straus said Wolverine’s “portfolio of purpose-driven heritage brands, knowledge and expertise in building performance brands, robust international distribution, and supply chain expertise provides a strong platform to expand Sweaty Betty and further our mission to ’empower more women through fitness all over the world.’ “
The footwear portfolio company expects Sweaty Betty to immediately add to its earnings and raised its full year revenue forecast to a range of $2.44 billion to $2.5 billion, up from its previous expectations of $2.34 billion to $2.4 billion.
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