Heelys Rejects Sketchers Proposed Acquisition
Skechers USA Inc., a specialty footwear retailer, recently made an acquisition proposal to acquire Heelys Inc., which designs, markets and distributes innovative, action sports-inspired products, for $5.25 per share in cash, or an aggregate of $142.8 million. The bid has been subsequently rejected by Heelys' Board of Directors, which concludes that the proposal was not in the best interest of its stockholders.
Gary Martin, chairman of the Board of Directors of Heelys, says, "The Board believes the $5.25 offering price does not reflect the value of Heelys and that entering into discussions with Skechers based on their unsolicited proposal is premature at this time."
The proposal came in a letter that Robert Greenberg, chairman and chief executive officer of Skechers, sent to Martin. Following an initial proposal made by Skechers to Heelys on May 28, 2008, this revised proposal - if accepted - would have provided to Heelys' stockholders an 8.2 percent premium to the closing price of its common shares on August 12, 2008, and a 31 percent premium to the closing price of its common shares, net of the cash and cash equivalents that the company reported, as of June 30, 2008.
Gary Martin, chairman of the Board of Directors of Heelys, says, "The Board believes the $5.25 offering price does not reflect the value of Heelys and that entering into discussions with Skechers based on their unsolicited proposal is premature at this time."
The proposal came in a letter that Robert Greenberg, chairman and chief executive officer of Skechers, sent to Martin. Following an initial proposal made by Skechers to Heelys on May 28, 2008, this revised proposal - if accepted - would have provided to Heelys' stockholders an 8.2 percent premium to the closing price of its common shares on August 12, 2008, and a 31 percent premium to the closing price of its common shares, net of the cash and cash equivalents that the company reported, as of June 30, 2008.