Steve Madden Completes Acquisition of Cejon
May 26 2011 - 8:00AM
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 completed its acquisition of privately held
Cejon, Inc., Cejon Accessories, Inc. and New East Designs, LLC
(together, “Cejon”). Cejon is a market-leading designer and
marketer of cold weather accessories, fashion scarves, wraps and
other trend accessories.
The acquisition was completed for $30 million in cash subject to
a working capital adjustment plus certain earn-out provisions based
on financial performance through June 30, 2016. The transaction is
expected to be immediately accretive, contributing approximately
$0.07 - $0.09 in diluted EPS in its first full year under Steve
Madden ownership after giving effect to the Company’s recently
announced 3-for-2 stock split.
Founded in 1991 by David Seeherman, Cejon markets accessories
primarily under the Cejon brand name, private labels and the Steve
Madden brand name. Cejon has been a licensee of Steve Madden for
cold weather and selected other fashion accessories since September
2006. Cejon distributes products to department stores, national
chains, mass merchants and specialty stores. In 2010, net sales of
Cejon totaled approximately $64 million (unaudited).
Edward Rosenfeld, Chairman and Chief Executive Officer of Steve
Madden, commented, "The acquisition of Cejon enables us to further
strengthen and expand our accessories platform. Cejon is truly a
market leader in cold weather and other fashion accessories, and we
believe it’s a great complement to our existing accessories
business, which is primarily focused on handbags and belts. With
its proven business model and substantial growth opportunities,
Cejon is a great addition to our company.”
David Seeherman, Founder and Chief Executive Officer of Cejon,
added, “We have had a long standing relationship with Steve Madden
and are excited to begin working together in this new capacity. I’m
proud of what we have built at Cejon but am convinced that the best
is yet to come. I believe Cejon continues to have significant
growth opportunity and am confident that Steve Madden is the ideal
partner to help us reach our potential.”
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, Stevies, Betsey
Johnson, Betseyville, Report, Report Signature, R2 by Report and
Big Buddha, the Company is the licensee of various brands,
including Olsenboye for footwear, handbags and belts, Elizabeth and
James, Superga, l.e.i. and GLO for footwear and Daisy Fuentes for
handbags. 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 87 retail stores (including the Company's
three online 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 and bedding and bath products.
This press release contains forward looking statements as that
term is defined in the federal securities laws. The events
described in forward looking statements contained in this press
release may not occur. Generally these statements relate to
business plans or strategies, projected or anticipated benefits or
other consequences of the Company's plans or strategies, projected
or anticipated benefits from acquisitions to be made by the
Company, or projections involving anticipated revenues, earnings or
other aspects of the Company's operating results. The words "may,"
"will," "expect," "believe," "anticipate," "project," "plan,"
"intend," "estimate," and "continue," and their opposites and
similar expressions are intended to identify forward looking
statements. The Company cautions you that these statements are not
guarantees of future performance or events and are subject to a
number of uncertainties, risks and other influences, many of which
are beyond the Company's control, that may influence the accuracy
of the statements and the projections upon which the statements are
based. Factors which may affect the Company's results include, but
are not limited to, the risks and uncertainties related to the
Company’s integration of Cejon as well as the risks and
uncertainties discussed in the Company's Annual Report on Form 10-K
for the year ended December 31, 2010. Any one or more of these
uncertainties, risks and other influences could materially affect
the Company's results of operations and whether forward looking
statements made by the Company ultimately prove to be accurate. The
Company's actual results, performance and achievements could differ
materially from those expressed or implied in these forward looking
statements. The Company undertakes no obligation to publicly update
or revise any forward looking statements, whether from new
information, future events or otherwise.
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