Categories: U.S. Investing

Crocs to Receive $200 Million from Blackstone, CEO to Retire

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Crocs to Receive $200 Million from Blackstone, CEO to Retire (Reuters)

Crocs Inc (CROX.O) announced today that Blackstone Group LP (BX.N) is making a $200 million investment that will give the private equity firm a 13 percent stake in the shoe company. In return for the $200 million, Blackstone will receive preferred stock that it can convert to common stock in three years under certain conditions. Blackstone also receive two board seats. The preferred stock will have a 6 percent cash dividend rate and is convertible into shares of common stock at a conversion price of $14.50 per share. The shoemaker also announced late on Sunday that the company’s Chief Executive John McCarvel plans to retire in April and will give up his seat on Crocs’ board of directors.

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Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.