Timberland completes acquisition
The Timberland Company has completed its acquisition of merino wool sock manufacturer SmartWool, six weeks after it originally announced its plans. The $82 million purchase is expected to extend Timberland’s new brand growth capabilities, driving future growth and shareholder value.
SmartWool’s 2005 annual revenues are expected to be approximately $42 million and has Timberland executives anticipating their company’s earning shares to increase by 2 to 3 cents per share in 2006, with benefits weighted toward the second half of the year.
Timberland shares closed at $32.02 yesterday, still off its 2005 high of $41.01, which was reached in July.
“Timberland and SmartWool share a common heritage grounded in functional and purposeful innovation, and the combination of both brands will enable us to serve our growing customer bases with expanded offerings in socks, footwear, apparel and accessories,” said Timberland President and CEO, Jeffrey B. Swartz. “We’re delighted to welcome the SmartWool team to Timberland and look forward to working together to accelerate and broaden SmartWool’s brand reach.” – TRACIE STONE