Footwear Brand Allbirds Acquired by American Exchange Group

San Francisco-based Allbirds Inc., recognized for its sustainable wool sneakers, has entered into an agreement to be purchased by American Exchange Group.

The deal encompasses the acquisition of all assets and intellectual property belonging to the once-popular footwear company. American Exchange Group has agreed to a purchase price of $39 million for the transaction.

Timeline and Shareholder Approval

The completion of this acquisition is currently anticipated to occur during the second quarter of the year. Following this, a distribution of the net proceeds to the company's stockholders is projected to take place in the third quarter.

Allbirds is expected to file a proxy statement detailing the transaction and request stockholder approval for both the sale and the subsequent dissolution of the company. This filing and request are slated to occur no later than April 24.

Post-IPO Struggles Define Allbirds' Trajectory

Allbirds, which debuted on the public market in 2021, had previously enjoyed significant popularity, particularly among tech executives in Silicon Valley.

However, the company struggled to maintain that initial excitement following its Initial Public Offering (IPO). Product missteps further complicated matters as the brand faced intense competition from established sportswear giants like Nike Inc.

Financial Context of the Acquisition

During its 2021 IPO, Allbirds successfully raised $348 million, including any over-allotment shares. At its peak, the company's market valuation soared past $4 billion.

This valuation sharply declined in the subsequent months. As of Monday's closing, the stock price settled at $2.98, reflecting a market capitalization of $24.5 million.

Implications for Earnings Reporting

Due to the terms of this agreement, Allbirds has confirmed it will not be issuing its scheduled earnings press release. Consequently, the company will also cancel the earnings call that was originally set for Tuesday.

Advisors for the Deal: TD Cowen is serving as the financial adviser for Allbirds. Holland & Hart LLP is providing legal counsel to the San Francisco-based firm.