CROCS, INC. Enters into Definitive Agreement to Acquire Jibbitz LLC

Crocs, Inc. recently announced that it has entered into a definitive agreement to acquire 100% of the membership interest of Jibbitz, LLC for $10 million in cash, plus a potential earn-out of up to $10 million based on Jibbitz hitting certain earnings targets. Headquartered in Boulder, Colorado, Jibbitz is a family operated business that specializes in the customization of Crocs footwear. Jibbitz now features over 300 different designs being sold through 4,000 retail accounts both in the US and Europe. In addition to the purchase agreement, which is scheduled to close in December, Crocs and Jibbitz have also entered into an endorsement agreement that takes effect immediately. This agreement provides for Crocs’ public endorsement of Jibbitz on a worldwide basis. The endorsement agreement also allows Jibbitz to access Crocs’ network of distributors and retailers as well as utilize its warehousing and logistics infrastructure throughout the world.

Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented “Jibbitz has done a great job of creating a special niche in the footwear accessories industry and we are excited to join forces with them as we look to further expand the originality and uniqueness of the Crocs line of products. Much like Crocs, Jibbitz created a new market segment and was able to immediately capitalize on their creativity in the marketplace. I commend the Jibbitz team on their ability to develop this homegrown business into the market leader that it is today and I look forward to their successful integration into the Crocs family.”

“We are extremely excited to extend the Jibbitz brand and community spirit through this partnership with Crocs,” commented Sheri Schmelzer, Jibbitz founder. “Jibbitz specializes in unique designs that fit the lifestyle of the Crocs consumer and allows them to personalize their footwear regardless of age, gender or style preference. We can’t think of a better way to leverage our success and reach more target customers than to join the Crocs family and be a part of their future vision.”

Jibbitz will operate as a wholly owned subsidiary of Crocs, Inc. following the closing and Founders Rich and Sheri Schmelzer will remain with Jibbitz as President and Chief Design Officer respectively. The transaction is subject to customary closing conditions and regulatory approvals.

Crocs, Inc. is a rapidly growing designer, manufacturer and marketer of footwear for men, women and children under the crocs brand. All of our footwear products incorporate our proprietary closed-cell resin material, which we believe represents a substantial innovation in footwear comfort and functionality. Our proprietary closed-cell resin, which we refer to as croslite™ enables us to produce a soft and lightweight, non-marking, slip- and odor-resistant shoe. These unique properties make crocs footwear ideal for casual wear, as well as for recreational uses such as boating, hiking, fishing and gardening, and have enabled us to successfully market our products to a broad range of consumers.

Crocs, Inc. Acquires EXO Italia

Crocs, Inc. recently announced that it has acquired EXO Italia, S.r.l.. Headquartered in Padova, Italy, EXO Italia designs and develops EVA (Ethylene Vinyl Acetate) based finished products, primarily for the footwear industry. Since 1993, EXO Italia has worked with several leading branded consumer companies to produce high quality EVA based footwear for the global marketplace.

Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented, “EXO is renowned for developing some of the best EVA based footwear products and we look forward to combining their industry leading capabilities with our proprietary Croslite material. EXO’s expertise in design, product, tool, and process development will be a tremendous asset to us as we look to further diversify our footwear offerings and attract new consumers to the Crocs brand.”