American Exchange Group has agreed to buy all of the assets and intellectual property of Allbirds for $39 million. This sale price is approximately one-tenth of the $348 million raised during Allbirds’ IPO in 2021, highlighting a significant decline in the company’s market valuation.
The acquisition deal requires shareholder approval and is expected to close in the second quarter of the year. Proceeds from the sale will be distributed to stockholders in the third quarter, marking a pivotal moment for Allbirds, which has seen its shares fluctuate dramatically.
Following the announcement, shares of Allbirds jumped 36% in after-hours trading, closing at $2.98 before the news broke. This increase brought the company’s market capitalization to $24.5 million, indicating a premium over its previous trading price.
Allbirds, known for its environmentally friendly footwear, expanded aggressively into physical retail and adjacent product categories after going public. However, co-founder Tim Brown admitted that this rapid growth cost the company “some of our DNA,” suggesting challenges in maintaining its core brand identity amid expansion.
American Exchange Group, a privately held brand management firm, also owns other brands such as Aerosoles and Jonathan Adler. The acquisition of Allbirds could signal a strategic shift for both companies as they navigate the evolving retail landscape.
Details remain unconfirmed regarding the future direction of Allbirds under American Exchange Group’s ownership, and further developments are expected as the deal progresses through the necessary approvals.
