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Crocs Drops Most in 20 Months on $2.5 Billion Heydude Deal

  • Transaction is seen immediately boosting profit and sales
  • Piper flags casual-footwear brand for fast growth among teens
Crocs Inc. footwear.
Crocs Inc. footwear.

Photographer: Victor J. Blue/Bloomberg

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Crocs Inc. tumbled the most in more than a year after agreeing to buy casual-shoe brand Heydude for $2.5 billion in an effort to bolster its fast-growing business of offbeat footwear.

The purchase will be funded by $2.05 billion in cash and $450 million in Crocs shares issued to Heydude founder Alessandro Rosano, according to a statement Thursday. Crocs said it expects the deal to immediately add to its sales growth and earnings, while the combined operations will generate “significant” free cash flow.