Houlihan Lokey is pleased to announce that Cherokee Global Brands (NASDAQ GS: CHKE) has acquired Hi-Tec Sports International B.V. The transaction was announced on November 28, 2016, and closed on December 7, 2016.
Cherokee Global Brands (CGB) is a global brand marketing platform that manages a growing portfolio of active and family lifestyle brands, including Cherokee®, Carole Little®, Tony Hawk®Signature Apparel and Hawk Brands®, Liz Lange®, Everyday California®, Sideout®, and Flip Flop Shops®, a leading franchise retail chain, across multiple consumer product categories and retail tiers around the world. CGB's three value pillars—vision, agility, and scale—are essential to achieving long-term success as CGB further develops the global footprint for its brand portfolio. CGB's 360° platform enables the company and its licensing partners to expand wholesale and retail relationships and enter markets more quickly with a well-designed product, a fully developed supply chain, and fully integrated marketing plans. The company currently maintains license and franchise agreements with leading retailers and manufacturers that span more than 50 countries in 9,000 retail locations.
Hi-Tec Sports (Hi-Tec) is a global leader in sports, outdoor, work, and tactical footwear with distribution in more than 80 countries. The company manages and operates a portfolio of brands, including Hi-Tec®, Magnum®, Interceptor®, and 50Peaks®. Hi-Tec is headquartered in Amsterdam, employs more than 250 people globally, and represents global wholesale sales of approximately $288 million. The Hi-Tec brand portfolio holds strong positions in the United States, Western and Eastern Europe, the Middle East, Asia, and Latin and South America through retail and e-commerce partnerships. Hi-Tec also does business with institutions around the world, including police, military, EMS, fire, security, workwear, and governmental agencies.
The acquisition was funded through a term loan financing, public equity offering, and sale of Hi-Tec wholesale operations. Houlihan Lokey advised Cherokee Global Brands on M&A, debt financing, equity financing and financial & tax due diligence. This transaction is a prime example of the strength and uniqueness of Houlihan Lokey’s multidisciplinary platform.