K-Swiss sale to Korean firm closes
E.Land World Limited of Korea closed its $170 million buyout of Westlake Village-based athletic shoe company K-Swiss on April 30, after shareholders of the footwear company overwhelmingly approved the merger.
Under the terms of the sale, K-Swiss shareholders will receive $4.75 per share in cash, marking the high point of the company’s 52-week stock price range.
K-Swiss, which was closely held by CEO Steve Nichols and his family, said about 94.6 percent of the voting shares of the company were in favor of the merger. K-Swiss is now a subsidiary of E.Land World, a South Korean fashion and retail conglomerate.
About 200 of K-Swiss’ 600 workers were based in the U.S. The firm has not responded to Business Times questions in the past about what will happen to its corporate headquarters in Westlake Village.
The sale comes after K-Swiss, the maker of the iconic white footwear that was the world’s first all-leather tennis shoe when it made its debut in 1966, saw its revenues and market share decline precipitously in recent years. Analysts have said E.Land may not be able to revive the struggling K-Swiss brands but could use the deal as a chance to gain market share in the U.S.
