Crocs maker receives US$200 million investment.
Crocs announced that the Blackstone Group is making a $200 million investment that will give the fund a 13% stake in the footwear company, which has become popular worldwide.
NEW YORK, Dec 30 (Reuters) - Crocs said that the Blackstone Group is making a $200 million investment that will give the private equity firm a 13 percent stake in the footwear company.
In exchange for the $200 million, Blackstone will receive preferred shares that can be converted into common shares within three years, provided certain conditions are met. Blackstone will also receive two seats on the board.
Crocs also said on Sunday night that the company's chief executive, John McCarvel, plans to retire in April and will also give up his seat on the Crocs board.
"We will recruit a new CEO who will work with the restructured board to refine our short-term and long-term strategic plans, which will include a sharper focus on earnings growth with less emphasis on top-line growth," said Chairman Thomas Smach in a statement.
(By Michael Erman and Sakthi Prasad)