ROCKFORD, Mich., Sept. 29, 2017 /PRNewswire/ -- Wolverine
World Wide, Inc. (NYSE: WWW) today announced the sale of assets associated with its United States Department of Defense (DoD)
contract business and the transfer of outstanding DoD contracts to Original Footwear. Original is a Tennessee-based footwear manufacturer specializing in products for the Department of Defense under the
Altama® brand. The company also owns Original S.W.A.T®, and Ro-Search® brands. This sale will
improve the future viability of the Big Rapids factory operations. Original qualifies as a
"small business" under Small Business Administration regulations, which allows the company access to a significant number of
contracts not available to "large" corporations like Wolverine Worldwide. The sale is effective September
29, 2017.
Included in this sale is Wolverine Worldwide's Big Rapids, Michigan factory, which is one of
the largest producers of footwear to the United States military. Over the last several years,
the Company has invested significantly in the factory and its future, through facility expansion and machinery. Original Footwear
will become a footwear supplier to Wolverine Worldwide for certain products currently made in the Big
Rapids factory. Wolverine will retain the Bates brand and will continue to operate the Bates civilian and military
exchange business.
"The sale to Original Footwear will provide the opportunity for the Big Rapids factory to
compete for Department of Defense contracts set aside for small businesses," said, Blake Krueger,
Wolverine's chairman, chief executive officer and president. "We firmly believe that the sale of the Big Rapids factory and the DoD business to Original Footwear is in the best interest of the Big Rapids operations. With new ownership, we feel the factory is better positioned to win additional
contracts that will retain important manufacturing jobs for the community."
Wolverine continues to make significant progress toward its Wolverine WAY FORWARD strategic transformation, and this sale is
part of the Company's ongoing effort to improve near-term performance while building a foundation for the future.
ABOUT WOLVERINE WORLDWIDE
With a commitment to service and product excellence, Wolverine World Wide, Inc. is one of the world's leading
marketers of branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel.
The Company's portfolio of highly recognized brands includes: Merrell®, Sperry®, Hush Puppies®, Saucony®, Wolverine®, Keds®,
Stride Rite®, Chaco®, Bates®, HYTEST®, and Soft Style®. The Company also is the global footwear licensee of popular brands
including Cat® and Harley-Davidson®. The Company's products are carried by leading retailers in the U.S. and globally in
approximately 200 countries and territories. For additional information, please visit, www.wolverineworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, including statements regarding: the Company's strategic plans,
the consummation of the transactions contemplated by the announced transaction and the Company's realization of the benefits of
the announced agreement. In addition, words such as "guidance," "estimates," "anticipates," "believes," "forecasts," "step,"
"plans," "predicts," "projects," "is likely," "expects," "intends," "should," "will," "confident," variations of such words, and
similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties, and assumptions ("Risk Factors") that are difficult to predict with regard
to timing, extent, likelihood, and degree of occurrence. Risk Factors include, among others: the transactions contemplated
by the agreement may not be consummated, the Company may not realize the expected benefits of the announced agreement, changes in
general economic conditions, employment rates, business conditions, interest rates, tax policies and other factors affecting
consumer spending in the markets and regions in which the Company's products are sold; the inability for any reason to
effectively compete in global footwear, apparel and consumer-direct markets; the inability to maintain positive brand images and
anticipate, understand and respond to changing footwear and apparel trends and consumer preferences; the inability to effectively
manage inventory levels; increases or changes in duties, tariffs, quotas or applicable assessments in countries of import and
export; foreign currency exchange rate fluctuations; currency restrictions; capacity constraints, production disruptions, quality
issues, price increases or other risks associated with foreign sourcing; the cost and availability of raw materials, inventories,
services and labor for owned and contract manufacturers; labor disruptions; changes in relationships with, including the loss of,
significant wholesale customers; the failure of the U.S. Department of Defense to exercise future purchase options or award new
contracts, or the cancellation or modification of existing contracts by the Department of Defense or other military purchasers;
risks related to the significant investment in, and performance of, the Company's consumer-direct operations; risks related to
expansion into new markets and complementary product categories as well as consumer-direct operations; the impact of seasonality
and unpredictable weather conditions; changes in general economic conditions and/or the credit markets on the Company's
distributors, suppliers and customers; increase in the Company's effective tax rates; failure of licensees or distributors to
meet planned annual sales goals or to make timely payments to the Company; the risks of doing business in developing countries,
and politically or economically volatile areas; the ability to secure and protect owned intellectual property or use licensed
intellectual property; the impact of regulation, regulatory and legal proceedings and legal compliance risks; the potential
breach of the Company's databases, or those of its vendors, which contain certain personal information or payment card data;
problems affecting the Company's distribution system, including service interruptions at shipping and receiving ports; strategic
actions, including new initiatives and ventures, acquisitions and dispositions, and the Company's success in integrating acquired
businesses, and implementing new initiatives and ventures; the risk of impairment to goodwill and other acquired intangibles; the
success of the Company's consumer-direct realignment initiatives; changes in future pension funding requirements and pension
expenses; and additional factors discussed in the Company's reports filed with the Securities and Exchange Commission and
exhibits thereto. The foregoing Risk Factors, as well as other existing Risk Factors and new Risk Factors that emerge from time
to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks
and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual
results. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements.
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SOURCE Wolverine World Wide, Inc.