Heelys agrees to sell operations to private buyer
DALLAS (AP) — Heelys Inc., maker of wheeled shoes for kids, said Tuesday it has agreed to sell its operations to a group led by the private equity firm Evergreen Group Ventures for $13.9 million in cash and then dissolve what is left of the company.
The announcement comes after years of declining sales of the company's roller shoes, which have been hurt by the economic downturn.
The Dallas-based company said its cash and securities, which total about $58.2 million at the end of June, will not be included in the sale.
"After a thorough analysis of various strategic alternatives, the board has determined that this all-cash transaction represents a great outcome for the company and its stockholders," said Tom Hansen, Heelys' president and CEO.
The company said it will consider alternate offers for 30 days. The proposal is subject to approval by the majority of Heely's shareholders.
If the sale goes through, the Heelys board plans to dissolve the company, paying off outstanding liabilities and distributing the net proceeds to shareholders.