For the third time, Baltimore-based Aether Holdings is changing its business strategy but this time the company is making a huge splash in brand marketing with the purchase of Athlete?s Foot stores, the world?s largest athletic footwear retailer, the company announced.
“The Athlete?s Foot is a retail brand that is recognized by consumers worldwide,” said Robert W. D?Loren, Aether?s CEO. “This franchise system will provide us not only with a historical and growing revenue stream, but also a flexible distribution channel for additional consumer brands that we plan to acquire in the future.”
Athlete?s Foot started in 1971 in Pittsburgh and has grown to 575 locations in 40 countries, the company said in a statement.
Aether will pay $51.5 million to buy Athlete?s Foot through a combination of cash and Aether stock, less any assumed debt. Aether also agreed to pay an additional $8.5 million in cash and stock if certain profit goals are meet during the third and fourth quarters. Aether will change its company name to NextCen Brands and move there headquarters from Baltimore to New York.
A spokesman for Athlete?s Foot said that the company will release more details about the deal today.
“This is an excitingfirst step for Aether toward building a large and diverse portfolio of consumer brands and franchise-related assets,” D?Loren said.
Robert J. Corliss, CEO of Athlete?s Foot, will continue with Aether after closing the deal and will serve as president and CEO of Aether?s retail franchise division, NexCen Franchise Brands Inc.
“Our long-standing relationship with Bob D?Loren …. has served The Athlete?s Foot well over the past several years,” Corliss stated in a release.
Aether originally started in the 1990s as a telecommunications company. It later changed to a mortgage-backed securities firm and then became a “brand acquisition and management company” focused on consumer brand products and franchises, the company stated in a release.
The company will seek shareholder approval for the sale.
