Footwear manufacturer Wolverine Worldwide has announced several strategic actions to focus its portfolio, including selling its Wolverine Leathers business and equity interest in the Merrell and Saucony joint venture.

The company has entered into agreements to sell its equity interest in the Merrell and Saucony joint venture entities to Xtep, as well as accelerate an existing option to sell a minority ownership interest in the entity that owns the Saucony intellectual property in China to Xtep, for a total of $61 million.

Wolverine Worldwide formed a joint venture with Xtep in 2019 to launch the Merrell and Saucony brands in China. 

Following these agreements, Xtep will exclusively carry out the development, marketing and distribution of the Saucony and Merrell brands in China. The business has thus transformed from a joint venture model to a license and distribution rights model.

Wolverine Worldwide has also entered into a definitive agreement to sell its Asia-based Wolverine Leathers business to Interhides Public Company for $9 million.

These actions come after the company’s sales of the US Wolverine Leathers business and Hush Puppies intellectual property in China, Hong Kong, and Macau in August, and Keds in February.

“Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet,” said Chris Hufnagel, president and CEO of Wolverine Worldwide.

“While our work isn’t done, we enter the new year with a clear vision for the future, enhanced ability to invest in our brands and platforms, and ultimately, a better position to deliver stronger returns for our shareholders.”