K-Swiss Inc. agreed Wednesday to acquire the remaining 43 percent equity interest in French shoemaker Palladium SAS for about $7.1 million.
After markets closed, the Westlake Village-based shoemaker said it will pay 5 million Euros in cash, plus a potential earn-out based on Palladium? financial performance in 2012. K-Swiss, which makes sneakers and casual shoes, acquired a 57 percent interest in the St. Priest, France company in 2008.
?e have been pleased with the early success of Palladium since our initial acquisition of majority ownership,?said Chairman Steven Nichols in a statement. ?ith an imminent launch for the brand in the United States, this is the right time to exercise our option to acquire full ownership.?p>The purchase is expected to close later this month, requiring the recording of a $2.6 million non-operating loss in the second quarter, said K-Swiss, which did not offer additional details on the loss.
Before the announcement, K-Swiss shares closed up 7 cents, or less than 1 percent, to $9.55.
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