Wolverine World Wide Inc.
WWW,
+0.33%
announced Tuesday that it has acquired British lifestyle brand Sweaty Betty in a $410 million all-cash deal. Wolverine funded the transaction with cash and credit. Founded in 1998, more than 80% of Sweaty Betty's sales come through direct-to-consumer channels. "The acquisition of Sweaty Betty complements our strategic shift over the last several years from a traditional footwear wholesaler into a consumer-obsessed, digital-focused growth company," said Wolverine Chief Executive Blake Krueger in a statement. Wolverine brands include the namesake label, Keds, Saucony and Merrell. "It also gives us a leadership position in the growing women's activewear category," he said. Wolverine expects the deal to be earnings accretive in a year. Wolverine acquired all of the shares of Lady of Leisure InvestCo Limited, the group that owns Sweaty Betty, from L Catterton and other shareholders. Wolverine stock rose 1.3% in premarket trading after the deal, and has gained 7.7% for the year to date. The S&P 500 index
SPX,
-0.18%
is up 16.8% for 2021 so far.