Cherokee Acquires Hi-Tec Sports for $95.8 Million

Cherokee, a marketer of fashion and lifestyle brands, has agreed to acquire Dutch footwear company Hi-Tec Sports International Holdings for approximately $95.8 million on a cash-free, debt-free basis.

Cherokee has also agreed to sell certain assets related to Hi-Tec’s wholesale operations, the proceeds of which will be used to fund a portion of the Hi-Tec Acquisition. The company said it expects the purchase price for the Hi-Tec intellectual property assets that will be retained will be approximately $62 million.

To fund a portion of the purchase price, Cherokee entered into a commitment letter for a new $50 million credit facility with Cerberus Business Finance, LLC and a commitment letter for a $5 million receivables funding loan to be provided by Jess Ravich, chairman of the company’s board of directors.

Cherokee also has priced an underwritten public offering of 3,685,000 shares of its common stock at $9.50 per share for total gross proceeds of approximately $35 million. Roth Capital Partners is the sole manager for the offering. The stock recently traded up 0.5% at $10.05.

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