DP Partners Leases 59,000 Square Feet of Industrial Space in Portland Market

2010-02-15

 
PORTLAND, OR – February 15, 2010 – LaCrosse Footwear, Inc. (Nasdaq: BOOT), a leading provider of premium branded footwear for work and outdoor users, has signed a long-term lease for 59,000 square feet of industrial space at the LogistiCourt at Portal Way in Portland, Ore., announced Kirk Olsen, the Northwest Region Partner for national developer DP Partners, a member of Dermody Properties.
 
“DP Partners is excited to welcome such an outstanding, locally-based company to our facility for the production of its Danner® brand of footwear,” Olsen said. “The features of LogistiCourt, such as its location, configuration, and modern construction, will enable Danner to improve its operating efficiencies and expand its overall capabilities and capacity.”
 
LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative footwear for work and outdoor users. The company’s trusted Danner® brand is sold to a network of specialty retailers and distributors in the United States, Canada, Europe and Asia.
 
By entering into this new lease, Danner approximately doubles the square footage of its existing Portland-based factory which is being replaced. “Our new, world-class production facility will significantly increase our capacity to meet the growing worldwide demand from our many customers who depend on our U.S.-manufactured Danner® footwear being crafted to the very highest standards,” said Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. LaCrosse expects to begin production in the new facility in the third quarter of 2010, and expects total capital expenditures to be approximately $8 to $9 million which includes leasehold improvements and machinery for the new factory facility.
 
Danner® boots have been hand-crafted in Portland since 1933. According to Bruce Warner, Executive Director of the Portland Development Commission, “As an advanced manufacturer of activewear, and a significant source of jobs, LaCrosse is the kind of company our region needs to support. LaCrosse is at the center of a targeted industry group that is critical to the city’s current and future economic health.” Warner added that PDC’s work with LaCrosse exemplifies the public-private collaboration that supports jobs in the key industries identified in the city’s five-year economic development strategy. “The PDC and other state economic agencies supported the expansion of the Danner production facility because this storied company is investing in our community and expanding the employment base.”
 
The collaborative efforts of LaCrosse, DP Partners, and the economic development agencies represent the public-private partnerships that will strengthen the region’s economy.
 
DP Partners’ leasing representative for the LaCrosse transaction at LogistiCourt at Portal Way was Portland’s CB Richard Ellis team of Andy Kangas, Vice President and Stuart Skaug, Senior Associate, and its Counsel was Andy Davis, Partner, at Stoel Rives, LLP.  LaCrosse Footwear was represented by Portland-based Tony Reser, SIOR, Senior Vice President at GVA Kidder Mathews.
 
 
 
About DP Partners
 
Reno, Nev.-based DP Partners, a member of Dermody Properties, is a national industrial developer of parks and facilities located in areas with excellent access to transportation infrastructures.  Founded in 1960, DP Partners ranked in the top 10 privately owned industrial development firms in the country.  The company has utilized partnership structures with public agencies, construction companies, other developers, clients and financial entities to achieve successful growth.  To learn more about DP Partners, visit www.dermody.com or call Kirk Olsen in Portland at (503) 535-0616.
 
About LaCrosse Footwear, Inc.
 
LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative footwear for work and outdoor users. The Company’s trusted Danner® and LaCrosse® brands are sold to a network of specialty retailers and distributors in the United States, Canada, Europe and Asia. Work consumers include people in law enforcement, transportation, mining, oil and gas exploration and extraction, construction, military services and other occupations that require high-performance and protective footwear as a critical tool for the job.   Outdoor consumers include people active in hunting, hiking and other outdoor recreational activities. For more information about LaCrosse Footwear products, please visit our Internet websites at www.lacrossefootwear.com and www.danner.com. For additional investor information, see our corporate website at www.lacrossefootwearinc.com.  
 
Forward-Looking Statements Related to LaCrosse Footwear, Inc.  
 
All statements, other than statements of historical facts, included in this release, including without limitation statements concerning the anticipated favorable impact of this new factory on the Company’s future results of operations in the areas of additional capacity, innovation and production capabilities, anticipated capital expenditures and one-time operating expenses and operating efficiencies are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as  “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could” and other terms of similar meaning, typically identify such forward-looking statements.  The Company assumes no obligation to update or revise any forward-looking statements to reflect the occurrence or non-occurrence of future events or circumstances.   Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties.  Risk factors and other uncertainties which may directly impact the outcome of such forward-looking statements included in this release, each of which are included in our 2008 Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q for 2009, include the following:  
 
  • Permits and approvals by government agencies could delay or stop the project plans for the new Danner factory.
  • Uncertainties related to our sales to the U.S. military, which may not continue at the current levels.
  • Deterioration in the general business environment and lack of growth in consumer spending, which could impact both the financial stability of our domestic and international retail channel base and require additional price discounts for retailers and direct consumers.