Jibbitz to be acquired by Crocs!

Jibbitz is extremely excited to announce that we have signed a deal to be acquired by Crocs.

We assume that there are many questions. Here is our attempt to answer what we think your “Knee-Jerk” questions are:

Q: How much are you selling Jibbitz for?
A: We have signed an agreement to sell Jibbitz later this year for $10M in Cash and up to $10M more through an earn-out ($20M Total).

Q: What is the “Endorsement Agreement” that is referred to in the press release?
A: The “Endorsement Agreement” allows Jibbitz to sell to stores that carry Crocs. Specifically Crocs will introduce us to their largest customers, distributors, and their vast network of business relationships. Amongst other things, the agreement also allows Jibbitz to sell a Crocs branded Jibbit and for Crocs reps to promote the line and refer orders into Jibbitz.

Q: Why did you sell to Crocs?
A: There are many reasons for this:
1. The Jibbitz founders built the business with the hope of one day selling to Crocs. So this is perfect closure to a wild and wonderful ride.
2. Jibbitz is at the point where we need help from a large Company like Crocs to open doors that would not normally be available to a small company like ours. Through this union, Jibbitz extends its brand to a wider range of consumers and businesses.
3. Crocs is a really cool company. They have amazing ideas and a wonderful product that Jibbitz really wanted to be a part of.
4. Crocs recognizes the spirit and enthusiasm Jibbitz has created. They wants us to continue to run the business exactly the way we have been. This is a “Win-Win” for both Companies and ultimately the Crocs consumers will benefit.

Q: What will happen to the Jibbitz brand after the acquisition closes?
A: Crocs has made it clear that they want Jibbitz to operate the business with the same spirit and enthusiasm that it currently does today. After closing, we do not anticipate any negative changes.

Q: What will happen to the 4,000 stores that carry Jibbitz?
A: We only hope that this union will improve upon the relationships that we have already cultivated with each of these stores.

Q: Will the founders and employees stay with Jibbitz?
A: Yes, we plan on staying. The Founders Sheri and Rich Schmelzer will stay with Jibbitz as Chief Design Officer and President respectively. We have no plans to eliminate staff as a direct result of this transaction. However, in our ordinary course of business we may from time to time add/remove employee’s if/when needed.

Q: How will I place my Jibbitz wholesale orders in the future?
A: As always, wholesale accounts can fax their orders into 303.484.6380, call our customer service line at 303.449.0442, or they can continue to place their orders through our existing network of outside sales reps, and now (as a result of the “Endorsement Agreement”) through your local Crocs Reps who can forward those orders on to us.

There are so many people to thank:

The employees, the reps, and the vendors that helped us navigate this massive effort and our friends and family who supported us through the late nights, weekends, and vacations deserve our applause. We would especially like to thank Zan O’Leary who managed to keep us all together through this endeavor and Glynde Mangum who, as head of inside sales and customer service, helped us grow from a few thousand a month to several million over the last 9 months. We would also like to thank Robbie Katz and Al Clark. There are of course many others to thank. We have an amazing team, but far to many for this Blog. So thanks to you all and rest assured that we will buy you a beer or two very soon.

Thanks for everything and Have Fun - The Schmelzer Family