Crocs Inc to buy Heydude for $2.5 Billion

Crocs Inc has announced that the company would be taking over the footwear label Heydude for a deal of $2.5 billion, seeing the surge in demand for casual shoes in the market. 

The demand for casual shoes increased during the pandemic as most of the people were stuck in their homes. This also led to a rise in benefit for the companies like Crocs and Ugg brand owner Deckers Outdoor Corp. Matt Powell, Senior Industry Advisor of sports at the NPD Group has said that this is a good acquisition from the Crocs as Heydude has been one of the strongest performers during the pandemic.

Heydude is a casual shoe company that was founded in 2008 in Italy. The company gets around 43% of its sales from online channels. Heydude is known for its lightweight casual shoes and is expected to have $570 million in revenue in 2021.  

Andrew Rees, the Chief Executive Officer at Crocs has said that Heydude has been affected by the factory closure in Vietnam. The brand has also faced global freight issues and delays and elevated costs in terms of taking its products to the United States of America.