From USA TODAY
Crocs CEO leaving as Blackstone invests $200M
NIWOT, Colo. — The company that makes Crocs shoes is getting a $200 million bailout from a private equity fund, and its CEO is retiring. In afternoon trading, shares of the company based in the Boulder-Longmont area of Colorado are rocketing nearly 20%, to $15.97 a share. That’s a long way from their nadir of around $1 in late 2008. Crocs says it will use the money from Blackstone, plus cash on hand, for a $350 million share buyback. The deal gives Crocs a cash infusion, gives Blackstone two seats on the board and preferred shares that pay a 6% dividend, and gives shareholders an additional return by way of the buyback. Crocs shares peaked above $75 in 2007 as buyers snapped up the clogs known for being comfortable but ugly. But it hasn’t been able to add new products with the same popularity.
Crocs also said late Sunday that CEO John McCarvel is retiring and giving up his board seat around the end of April. He has been with Crocs since 2005, and had been president and CEO since 2010. The company said it has begun an outside search for his replacement.
McCarvel called the Blackstone investment “a vote of confidence in our company and our brand.”
Lamar Walter Think Success Daily