NEW YORK Dec 29 Blackstone Group LP is
making a $200 million investment in Crocs Inc that will
give the private equity firm a 13 percent stake in the shoe
company, Crocs' chief financial officer told the Wall Street
Journal on Sunday.
Crocs CFO Jeff Lasher also told the Journal that the
company's chief executive, John McCarvel, plans to retire in
April and will also give up his seat on Crocs' board.
Crocs, which is known for its colorful clogs, intends to use
the Blackstone investment to help pay for a $350 million stock
repurchase it expects to launch in the first quarter, Lasher
In exchange for the $200 million, Blackstone will receive
preferred stock that can convert to common stock in three years
if certain conditions are met, he said. It will also receive two
Established in 2002, Crocs sells its shoes, made out of a
proprietary closed-cell resin it calls Croslite and offered in
more than 300 four-season footwear styles in some 125 countries,
according to its website.
Crocs posted a 2 percent decline in sales for the third
quarter, hurt by weakness in the Americas and Japan. The company
said it saw less discretionary spending for footwear, apparel
and other consumer goods in the United States.
Blackstone declined to comment on the matter when contacted
by Reuters. Crocs and CEO McCarvel could not be immediately
reached for comment.