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Crocs Takes a Bite Out of the Competition Acquires Bite Footwear Brand for $1.75 Million LAS VEGAS (July 30, 2007)—Crocs Inc. today announced that it has entered into a definitive agreement to purchase the Bite Footwear brands for $1.75 million in cash. Crocs could receive potential earn-out of up to $1.75 million depending on Bite’s ability to hit certain earnings targets over a three-year period.
 Crocs CEO and president Ron Snyder said in a statement, "Over the past 10 years Bite has created a portfolio of exciting and innovative footwear products that we believe will be a terrific compliment to our existing business. Similar to Crocs, Bite Footwear utilizes patented technology to provide consumers with comfort, support and functionality across several target markets. We are confident that between their research, development and design capabilities and our global manufacturing base and retail distribution network we can take this brand to the next level."
Under terms of this agreement, Bite Footwear will operate as Bite Inc. a wholly owned subsidiary of Crocs Inc. Bite Footwear founder Dale Bathum will remain with Bite.
"We are excited to join the Crocs team, and see this transaction as a tremendous opportunity to join the ranks of Crocs' existing lines of unique products, its terrific management team, large distribution channels, and sourcing capabilities," said Bathum. "With Crocs, we will have the resources to bring more innovative ideas to market and to continue to spread the word about the importance of good foot health and an active lifestyle, helping to further contribute to Crocs' success."
Bite designs, markets and sells sport and activity-specific footwear for golf, adventure, healthy lifestyle and water sports. Crocs is best known for its colorful, squishy shoes, made with its proprietary closed cell resin material called Croslite. Future Bite collections will incorporate this material, and Bite's OrthoSport product line will expand Crocs RX medical line.
Today’s announcement comes just days after Crocs reported its record second quarter results for 2007. Revenues for the quarter ended June 30 increased a whopping 162 percent to $224.3 million, this in comparison to the $85.6 million generated during last year’s second quarter. Net income was $48.5 million compared to last year’s second quarter income of $15.7 million.
Looking ahead to the third quarter, Crocs anticipated total revenues between the range of $240 million to $250 million. Crocs also raised its fiscal 2007 guidance to $810 million to $820 million.
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