Synopsis
American Exchange Group agreed to acquire all assets and liabilities of Allbirds for $39 million. Allbirds will seek shareholder approval and plan dissolution. The deal may close in the second quarter of 2026, with the distribution of net proceeds after taking into account wind-down expenses, to shareholders anticipated in the third quarter.Shares of Allbirds soared 36% on the news in after-hours trading in New York.
The shoemaker said the deal, which is expected to close in the second quarter, still needs shareholder approval. A distribution of net proceeds to stockholders is expected in the third quarter.
San Francisco-based Allbirds, known for its eco-friendly wool sneakers, had struggled after its 2021 IPO to recapture the hype that had helped its shoes take off among tech executives in Silicon Valley. Product missteps only heightened the challenges as it faced stiff competition in a market dominated by sportswear stalwarts like Nike Inc.
Allbirds raised $348 million, including overallotment shares, in its 2021 initial public offering. Its market value soared to more than $4 billion, only to crash within months. The stock closed at $2.98 on Monday, giving the company a market value of $24.5 million.
Allbirds is expected to file a proxy statement describing the transaction and to seek stockholder approval of the sale and subsequent dissolution of the company no later than April 24.
TD Cowen is acting as financial adviser and Holland & Hart LLP is acting as legal counsel to Allbirds. As a result of the deal, Allbirds said it will not be issuing an earnings press release or holding its originally scheduled earnings call on Tuesday.
