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Charlesbank to Acquire Assets of Rockport Footwear Manufacturer
Wednesday 16 May 2018

16 May 2018 - Boston, US-based private equity firm Charlesbank has entered into an asset purchase agreement to acquire substantially all assets of Boston-based footwear provider Rockport Group, the company said.
To facilitate the sale, Rockport and its US and Canadian subsidiaries filed voluntary petitions under Chapter 11 of the US Bankruptcy Code.
Boston Business Journal reported the USD 150m bid from Charlesbank is conditional upon a court proceeding. Charlesbank will serve as the stalking horse bidder in a court-supervised sale process, and the agreement is subject to higher and better offers, among other conditions.
The transaction with Charlesbank will ensure the continuation of Rockport, and provides a clear path forward for the company by focussing on its global wholesale, independent and e-commerce operations.
With the alignment of its operations and the financial strength, consumer expertise and support of Charlesbank, Rockport will be better positioned in the retail landscape.
Rockport has obtained USD 20m in new-money debtor-in-possession (DIP) financing from its existing noteholders, which, in addition to its existing USD 60m credit facility, will provide the company with liquidity to maintain its operations through the sale process.
The agreement with Charlesbank includes Rockport's global wholesale assets, e-commerce platform and retail operations in Asia and Europe. In addition, Charlesbank will have the opportunity to evaluate Rockport's North American retail operations and determine whether it will pursue an acquisition of certain of these locations.
The Rockport Group is home to the Aravon, Dunham and Rockport brands and the Rockport Cobb Hill Collection.
Richards, Layton and Finger PA is serving as legal counsel to Rockport. Alvarez and Marsal is serving as restructuring advisor and Houlihan Lokey, Inc. is serving as investment banker and financial advisor.
Date Published: 16/05/2018
Target: Rockport Group
Country: USA
Deal Size: 150m (USD)
Sector: Clothing/Textiles
Type: LBO
Status: Agreed
Buyer: Charlesbank