Wednesday, 24 August 2016
Last updated 14 hours ago
Jan 2 2014 | 11:15am ET
The Blackstone Group is betting that consumers will rediscover their taste for colorful plastic footwear in 2014.
The alternative investments giant will invest $200 million in convertible preferred shares of Crocs Inc., known for its signature clogs. Blackstone's cash will be used to boost Crocs' share buyback program to $350 million.
Crocs had been seeking a buyer for the whole company.
"This investment by Blackstone was the best combination of rewarding our long-term shareholders with the attention and the resources of Blackstone while at the same time allowing us to put a fairly large investment in our stock out of the hands of the public marketplace," Crocs CFO Jeff Lasher told Bloomberg News.
As part of the agreement, Blackstone is barred from buying up more than 25% of Crocs shares, and will receive up to $6 million in closing fees and other reimbursements from the company.
Crocs also announced that CEO John McCarvel will retire at the end of April after fouy years at the helm.