Teva sold to Deckers Outdoors

Footwear manufacturer/marketer Teva has agreed to be bought by footwear marketer Deckers Outdoor. The cash and stock transaction, valued at approximately $62 million, is expected to be completed by the end of the year.

Teva's assets include its $3 million-plus direct-to-consumer catalog and Internet business. Deckers has been selling Teva sports sandals since 1985; the brand accounted for about two-thirds of Deckers' total sales last year.

Deckers expects the acquisition to be accretive to its fiscal 2003 earnings before interest, taxes, depreciation and amortization (EBITDA) by approximately $6 million, primarily as a result of the elimination of approximately $5 million of minimum annual royalties under the existing Teva license agreement.