By Dave Sebastian

 

Honeywell International Inc. has agreed to sell its performance and lifestyle footwear business for roughly $230 million to Rocky Brands, a footwear and apparel maker.

The companies on Monday said the business to be divested includes five brands Honeywell deems non-core, including the Original Muck Boot Co., XTRATUF fishing boots and deck shoes, Ranger, NEOS overshoes and Servus protective rubber boots.

Rocky Brands is the manufacturer behind Rocky, Georgia Boot, Durango, Lehigh and the licensed brand Michelin. The acquisition will have minimal overlap with Rocky Brands' portfolio, Rocky Brands President and Chief Executive Jason Brooks said.

The deal, expected to close in the first quarter, will immediately add to Rocky Brands' gross margins and per-share earnings, the company said. Rocky Brands said it will fund the acquisition with an $80 million senior secured asset-backed credit facility with Bank of America NA, a $130 million senior secured term loan facility with the direct lending group of TCW Asset Management Co. LLC and cash on hand.

Honeywell, which will continue to make industrial safety footwear under brands such as Oliver and MTS, said the acquisition won't affect its financial guidance.

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

January 25, 2021 08:59 ET (13:59 GMT)

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