For: Crocs, Inc.
Company Contact:
Peter Case/Chief Financial Officer
(303) 848-7000
Tia Mattson/Public Relations Manager
(303) 848-7199
Investor/Media Contact:
Integrated Corporate Relations, Inc.
Investors: Chad Jacobs/Brendon Frey
Media: Michael Fox
(203) 682-8200
CROCS, INC. ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE JIBBITZ, LLC
NIWOT, COLORADO – October 3, 2006 – Crocs, Inc. (NASDAQ: CROX) today announced that it has entered into a definitive agreement to acquire 100% of the membership interest of Jibbitz, LLC for $10 million in cash, plus a potential earn-out of up to $10 million based on Jibbitz hitting certain earnings targets. Headquartered in Boulder, Colorado, Jibbitz is a family operated business that specializes in the customization of Crocs footwear. Jibbitz now features over 300 different designs being sold through 4,000 retail accounts both in the US and Europe. In addition to the purchase agreement, which is scheduled to close in December, Crocs and Jibbitz have also entered into an endorsement agreement that takes effect immediately. This agreement provides for Crocs’ public endorsement of Jibbitz on a worldwide basis. The endorsement agreement also allows Jibbitz to access Crocs’ network of distributors and retailers as well as utilize its warehousing and logistics infrastructure throughout the world.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented “Jibbitz has done a great job of creating a special niche in the footwear accessories industry and we are excited to join forces with them as we look to further expand the originality and uniqueness of the Crocs line of products. Much like Crocs, Jibbitz created a new market segment and was able to immediately capitalize on their creativity in the marketplace. I commend the Jibbitz team on their ability to develop this homegrown business into the market leader that it is today and I look forward to their successful integration into the Crocs family.”
“We are extremely excited to extend the Jibbitz brand and community spirit through this partnership with Crocs,” commented Sheri Schmelzer, Jibbitz founder. “Jibbitz specializes in unique designs that fit the lifestyle of the Crocs consumer and allows them to personalize their footwear regardless of age, gender or style preference. We can’t think of a better way to leverage our success and reach more target customers than to join the Crocs family and be a part of their future vision.”
Jibbitz will operate as a wholly owned subsidiary of Crocs, Inc. following the closing and Founders Rich and Sheri Schmelzer will remain with Jibbitz as President and Chief Design Officer respectively. The transaction is subject to customary closing conditions and regulatory approvals.
About Crocs, Inc.
Crocs, Inc. is a rapidly growing designer, manufacturer and marketer of footwear for men, women and children under the crocs brand. All of our footwear products incorporate our proprietary closed-cell resin material, which we believe represents a substantial innovation in footwear comfort and functionality. Our proprietary closed-cell resin, which we refer to as Croslite™ enables us to produce a soft and lightweight, non-marking, slip- and odor-resistant shoe. These unique properties make crocs footwear ideal for casual wear, as well as for recreational uses such as boating, hiking, fishing and gardening, and have enabled us to successfully market our products to a broad range of consumers.
About Jibbitz – “So, that’s what the holes are for!”
Jibbitz™ is a family-operated business based in Boulder, Colorado. Jibbitz was born when owner Sheri Schmelzer’s and her 3 children began to decorate their twelve pairs of Crocs. Schmelzer realized that fun, colorful accessories could be snapped into the holes of the shoes and be easily interchanged to create a new look. Jibbitz also manufactures and sells bracelets and anklets that can be customized with Jibbitz snap-on accessories. The company also sells sticker embellishments and charms. For more information about Jibbitz or to find a store near you that carries Jibbitz products, visit www.jibbitz.com.
Forward Looking Statements
Certain information contained in this press release may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to obtain and protect intellectual property rights and other factors described in our annual report on Form 10-K under the heading “Risk Factors,” and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission.