Wolverine World Wide Inc. has sold its Hush Puppies intellectual property in China, Hong Kong, and Macau, to Beijing Jiaman Dress Co., the latest move in the U.S. firm’s ongoing transformation of its brand portfolio.
Wolverine said it has entered into a definitive agreement to sell the Hush Puppies footwear brand trademarks, patents, copyrights and domains in China, Hong Kong and Macau to its current sublicensee, Beijing Jiaman Dress Co. for approximately USD 58.8 million.
As part of the transaction, the two parties have entered into a license and cooperation agreement providing for mutual engagement and brand stewardship of the Hush Puppies brand in the region.
Under the agreement, Wolverine will continue to own and operate the Hush Puppies brand throughout the rest of the world.
The transaction is expected to close in the coming weeks subject to satisfaction of customary closing conditions.
“Our strategic approach in China, Hong Kong and Macau is to focus on our biggest brands, and selling the Hush Puppies intellectual property in these countries is a part of this strategy,” said Chris Hufnagel, president and chief executive officer of Wolverine Worldwide.
“Hush Puppies remains an important brand in our portfolio, and we are committed to growing it through strong global licensing partnerships and expanding our connections with local consumers. We look forward to partnering with Beijing Jiaman Dress and to ensuring the global success of Hush Puppies.”
The company also said it completed the sale of its U.S. Wolverine leathers business to New Balance, for approximately USD 6 million in total proceeds. The company assigned Wolverine’s U.S. tannery contracts to New Balance, and continues to explore alternatives for the non-U.S. Wolverine leathers business, it added.
The sale of the Hush Puppies Greater China business follows the company’s recently completed sale of Keds to Designer Brands, the parent company of footwear retailer DSW, and the previously announced strategic alternatives process for Wolverine’s Sperry brand.