Oct 23 Heelys Inc, the maker of
children's sneakers with wheels in them, is selling itself to a
private equity firm, Evergreen Group Ventures, after suffering
years of fading sales and a sliding share price.
The value of Heelys, once worth more than $1 billion as
children flocked to its shoes, had faded to a market value of
just over $50 million at Monday's close on the Nasdaq, Thomson
Reuters data showed.
The shares jumped 24 percent in premarket trade on light
volume after the sale was announced in a regulatory filing. (r.reuters.com/vym53t)
Heelys' quarterly sales peaked at $74 million in 2007, not
long after the firm listed in December 2006, but were just under
$6 million in the second quarter this year.
Evergreen is to buy the operating assets for $13.9 million
in cash and the sneaker maker will then be liquidated.
Excluded from the sale is cash and marketable securities
held by Heelys, which it said totalled $58.2 million as at June
Shares of the company, which traded above $30 when they
listed in 2006, closed at $1.85 on Monday on the Nasdaq.
The deal gives Heelys 30 days to receive better offers.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Rodney