Wolverine World Wide, Inc. Establishes Owned European Operation for Its CAT and Merrell Footwear Businesses
Commenting on the acquisition, Bill Brown, President of Wolverine's Performance Footwear Group, said, "Nowhere in the world does CAT footwear have a stronger consumer and retail franchise than in Europe. With nearly 50% of CAT footwear's global volume coming from Europe, it makes sense to invest directly to strengthen our position in that market. By combining Wolverine's financial, operational and global marketing strengths with the Overland team's product expertise and in-depth knowledge of the European footwear market, we are creating a powerful organization that will ensure continued growth of this great footwear brand."
"Wolverine Europe will be an excellent platform from which to enhance the CAT brand's already strong franchise among European retailers and consumers," stated Stephen Palmer, newly appointed Managing Director of Wolverine Europe Limited. "Our customers will continue to receive the legendary quality and value they have come to expect from CAT Footwear, while benefiting from improved service and delivery performance. Wolverine World Wide has been an excellent partner since 1994, and their support and confidence in our European CAT Footwear team is deeply appreciated. Our whole team is excited and energized by these changes, and we look forward to exceeding our customers' expectations as we take the CAT Footwear business to the next level."
In a related action, Wolverine World Wide announced that it was expanding its owned Merrell operations in the United Kingdom to cover the additional countries of Austria, Belgium, France, Germany, Luxembourg, The Netherlands and Spain. A new subsidiary, Merrell Europe BV, has been formed to direct the operations of these additional countries.
"I am very pleased to announce the establishment of these new European-based operations to direct the growth of our CAT and Merrell brands," stated Timothy J. O'Donovan, President and CEO of Wolverine World Wide. "These actions are a natural progression of our strategy to build a stronger base in Europe, which is the largest better-grade footwear market in the world. These actions, when combined with our owned U.K-based Hush Puppies and Merrell operations, will give us critical mass to increase our share of this important market. Having on-the-ground operations for both brands will bring us much closer to the consumer, allowing us to respond to the changing needs of the marketplace. From a financial standpoint, we expect these two new businesses to add approximately ten percent to Wolverine's consolidated revenue base, and to be non-dilutive during 2002's transition year."
More details will be provided at the Company's fourth quarter 2001 conference call, scheduled for the first week of February, 2002.
With a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world's leading marketers of branded casual, active lifestyle, work, outdoor sport and uniform footwear and slippers. The Company's portfolio of highly recognized brands includes: Bates(R), Hush Puppies(R), HYTEST(R), Merrell(R) and Wolverine(R). The Company also markets footwear under the following popular licensed brands: CAT(R), Coleman(R), Harley-Davidson(R), Stanley(R) and Turtle Fur(R). The Company's products are carried by leading retailers in the U.S. and are distributed internationally in over 140 countries. For more information, please visit our website at www.wolverineworldwide.com.
CONTACT: Wolverine World Wide, Inc., Rockford
Stephen L. Gulis Jr., 616/866-5570
FAX: 616/866-0257
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