ROCKFORD, Mich. (AP) -- Wolverine World Wide Inc., which makes Merrell and Hush Puppies shoes, said Thursday it will acquire Colorado-based outdoor footwear company Chaco.
The terms of the deal were not disclosed.
Chaco specializes in making sandals designed for water and outdoor use. The deal also includes the company's winter boot brand ULU. Wolverine said the deal is an opportunity to grow its business in the U.S. and abroad.
Chaco will become part of Wolverine's outdoor group, which includes other brands such as Merrell and Patagonia footwear. Wolverine said all Chaco employees will stay on with the company at this time. Chaco's founder Mark Paigen will work as a consultant to the business.
Earlier this month, Wolverine announced it will cut 450 jobs -- about 10 percent of its staff -- in a cost-saving effort. The company is taking several other cost-reducing steps such as consolidating distribution and global operations functions and realigning its domestic manufacturing operations. It is also considering alternatives for its company-owned leather business and cutting corporate costs.
Its acquisition of Chaco follows closely on the heels of its purchase of Cushe, a U.K. footwear brand, announced earlier this month.
Shares of Michigan-based Wolverine fell 65 cents, or 3.5 percent, to $18.48 in midday trading.