Wolverine sell Asia-based leather business, reveals new Saucony and Merrell ops model for China

Wolverine World Wide announced on Monday plans to sell its Saucony intellectual property in China, and its Asia-based Wolverine leathers business, the latest in the trimming of its brand portfolio.

The Rockford, Michigan-based company has entered into an agreement to sell a minority ownership interest in the entity that owns the Saucony intellectual property in China to Xtep, its joint venture partner, as well as sell the company’s equity interest in the Merrell and Saucony joint venture entities, for a total amount of $61 million. 

The strategic move transitions the business from a joint venture to a license and distribution rights model, allowing Xtep to exclusively manage the development, marketing, and distribution of Saucony and Merrell products in China. 

Likewise, Wolverine Worldwide has entered into a definitive agreement to sell its Asia-based Wolverine Leathers business to Interhides Public Company Limited for approximately $9 million. 

Earlier this year, it sold its U.S. Wolverine leathers business to New Balance, for approximately $6 million in total proceeds, completing the company’s objective to divest its Wolverine Leathers business. 

“We’ve taken fast, bold, and decisive actions to stabilize the Company today, while working to transform Wolverine Worldwide for the future,” said Chris Hufnagel, president and chief executive officer. 

“Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet. While our work isn’t done, we enter the new year with a clear vision for the future, enhanced ability to invest in our brands and platforms, and ultimately, a better position to deliver stronger returns for our shareholders.”

These moves follow previously-announced transactions, including the sale of Keds for over $90 million in February 2023, the sale of Hush Puppies intellectual property in China, Hong Kong, and Macau for approximately $58.8 million in August 2023. The strategic alternatives process for the Sperry brand is ongoing.