Steve Madden To Acquire Mexico Licensee
September 30 2014 - 7:30AM
Business Wire
Steve Madden (Nasdaq:SHOO), a leading designer and marketer of
fashion footwear and accessories for women, men and children, today
announced that it has signed a definitive agreement to acquire
Trendy Imports S.A. de C.V., Comercial Diecisiette S.A. de C.V.,
and Maximus Designer Shoes S.A. de C.V. (together, “SM Mexico”). As
Steve Madden’s Mexican licensee, SM Mexico markets Steve Madden
products in Mexico in the wholesale channel as well as in Steve
Madden-branded retail stores.
The purchase is a cash transaction for approximately $15
million, subject to a working capital adjustment, plus repayment of
a short term loan and an earn-out provision based on future
financial performance. The transaction is expected to close in
January of 2015 and is expected to be accretive, contributing
approximately $0.02 – $0.03 in diluted EPS in 2015.
SM Mexico is a division of Grupo Dicanco, a distributor of
licensed footwear brands in Mexico. Grupo Dicanco has held the
exclusive license for wholesale and retail distribution of Steve
Madden footwear and accessories since 2005. SM Mexico currently
distributes products in leading department stores as well as 21
Steve Madden-branded retail stores. Net sales for SM Mexico for the
twelve months ended July 31, 2014 totaled approximately $15.4
million (unaudited).
Edward Rosenfeld, Chairman and Chief Executive Officer,
commented, “Mexico is a strong and growing market for the Steve
Madden brand. Upon the completion of this transaction, we plan to
enhance our presence in leading department stores, expand into new
wholesale accounts, grow our portfolio of Steve Madden retail
stores and introduce certain of our other brands into the Mexican
market. Diego Candano and his team have done a tremendous job in
building our Steve Madden brand in Mexico, and we look forward to
working with them to capitalize on the significant long term growth
opportunity in this region.”
Diego Candano, founder and Chief Executive Officer of SM Mexico,
stated, “Since introducing the Steve Madden brand into Mexico in
2005, we have built a strong, loyal following for the brand and a
business that is poised for growth. I look forward to working with
the Steve Madden team to build upon the strong momentum we have
created in Mexico.”
About Steve Madden
Steve Madden designs, sources and markets fashion-forward
footwear and accessories for women, men and children. In addition
to marketing products under its owned brands including Steve
Madden®, Steven by Steve Madden®, Madden Girl®, Freebird by
Steven®, Stevies®, Betsey Johnson®, Dolce Vita®, DV by Dolce Vita®,
Brian Atwood®, B Brian Atwood®, Report Signature®, Report®, Big
Buddha®, Wild Pair®, Cejon® and Mad Love®, the Company is the
licensee of various brands, including Olsenboye® for footwear,
handbags and belts and Superga® and l.e.i.® for footwear. The
Company also designs and sources products under private label brand
names for various retailers. The Company's wholesale distribution
includes department stores, specialty stores, luxury retailers,
national chains and mass merchants. The Company also operates 124
retail stores (including the Company's three Internet stores). The
Company licenses certain of its brands to third parties for the
marketing and sale of certain products, including for
ready-to-wear, outerwear, intimate apparel, eyewear, hosiery,
jewelry, fragrance, luggage and bedding and bath products.
ICR, Inc.Investor RelationsJean Fontana/Megan
Crudele203-682-8200www.icrinc.com
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