Rocky Brands began the year on a positive note, as the boot-wear based company announced both an acquisition and a Naval contract in the first part of 2021.
The brand first announced a new contract with the U.S. Navy in January. Rocky was awarded a contract worth approximately $3.5 million to produce a new safety boot for the U.S. Navy. Rocky began the manufacturing process immediately with deliveries to begin in the third quarter of 2021.
“Rocky has been a provider of military footwear for generations, and our relationship with the U.S. military is an integral part of our brand and our heritage,” said Jason Brooks, CEO of Rocky Brands, in the release. “It is an honor every time we are selected to produce reliable, performance-specific footwear for our servicemen and women.”
The agreement between Rocky and the U.S. Navy is for one year with an option to extend the contract for an additional two years. It is Rocky Brands’ third active contract with the U.S. Navy. The company also has an active contract to produce footwear for the Army.
The new eight-inch naval safety boot will be manufactured at Rocky’s company-owned factory in Puerto Rico.
Also in January, the company announced that it had entered into a definitive agreement to acquire competitor Honeywell International.
Rocky agreed to buy Honeywell International, which sells The Original Muck Boot Company and XTRATUF footwear brands, for a purchase price of $230 million.
“We’re acquiring a well-run business with a corporate culture and a customer base similar to ours, which provides meaningful growth opportunities within our existing categories as well as an entrée into new market segments,” Brooks said at the time.
Rocky Brands’ stock price moved $5 on the announcement, stock data shows.
Brooks said the move will develop the Nelsonville companies market presence.
The brand further announced in mid-March the completion of the acquisition of the performance and lifestyle footwear buisness.
“We are thrilled to have completed this transformative acquisition,” Brooks said at the time of deal completion. “The Original Muck Boot Company, XTRATUF, Servus, NEOS and Ranger brands are great additions to our existing portfolio while the total business nearly doubles the size of Rocky Brands’ annual revenues.”
The purchase was funded with an $80-million senior secured asset-backed credit facility with Bank of America, N.A., a $130 million senior secured term loan facility with The Direct Lending Group of TCW Asset Management Company LLC, and cash on hand.
“Its innovative and authentic product collections complement our existing offering with minimal overlap, which will allow us to strengthen our wholesale relationships and serve a wider consumer audience,” Brooks said.
At Nelsonville City Council in January, members lauded the company for obtaining Honeywell. Council Member Elizabeth Jones recognized Rocky for the work it does in the community.
“I think it’s one of the things we need to do is recognize these businesses who have been in our community and support us,” Jones said “They’re very very generous, so really their success is the success of our city.”
Council Member Cory Taylor said he hopes to see the acquisition lead to more professional jobs in the town.
“It’s anticipate great things coming for our community,”Taylor said. “I hope to see more of those types of jobs coming.”
Rocky Brands, headquartered in Nelsonville, is a manufacturer and marketer of footwear and apparel marketed under a portfolio of brand names including Rocky, Georgia Boot, Durango and Lehigh.