Jibbitz Acquisition and Business Growth

Jibbitz Acquisition by Crocs

• The Schmelzer family business, Jibbitz, sells accessories for Crocs.
• Crocs acquired Jibbitz for $10 million, with a potential $10 million bonus based on future performance.
• Jibbitz started as a small-scale project for the family to entertain their children.
• Jibbitz's success led to increased revenue, growing to $2 million per month between February and August.
• Jibbitz and Crocs are seen as a perfect fit by Sheri Schmelzer.

Jibbitz Business Model and Strategy

• Jibbitz started by selling mini faux flowers, buttons, and accessories to decorate Crocs.
• The business flourished with high demand, ultimately moving to a larger office and warehouse space in Boulder.
• Jibbitz expanded manufacturing in China to meet the growing demand.
• The business currently has 42 employees and plans for more warehouse space.

Jibbitz's Impact and Future Growth

• The acquisition provides access to Crocs' extensive distribution and retail network for Jibbitz.
• Jibbitz's chief design officer (Sheri Schmelzer) and president (Rich Schmelzer) will retain their positions.
• The acquisition will enable Jibbitz to expand its product line.
• Crocs will also benefit by controlling a business popular with children and controlling a portion of the market popular with children.
• Crocs will continue to advertise and introduce Jibbitz products.

Crocs Background

• Founded in Niwot, Colorado in 2002.
• Crocs sell comfortable and colourful shoes made from closed-cell resin.
• Crocs are popular with particular groups like nurses and chefs.

Explore the journey of Jibbitz from a family project to its acquisition by Crocs for $10 million. Learn about their innovative business model, rapid growth, and future expansion plans. Discover how this partnership positions Jibbitz for greater access to distribution and retail networks.