Steve Madden to Acquire Canadian Licensee
January 20 2012 - 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 signed a definitive agreement to acquire
substantially all the assets of privately held Steve Madden Canada
Inc., Steve Madden Retail Canada Inc., Pasa Agency Inc. and Gelati
Imports Inc. (together, “SM Canada”). As Steve Madden’s Canadian
licensee, SM Canada markets Steve Madden products in Canada on a
wholesale basis as well as in Steve Madden-branded retail
stores.
The purchase is a cash transaction for approximately $29
million, subject to a working capital adjustment, plus certain
earn-out provisions based on financial performance through March
31, 2017. The transaction is expected to be accretive, contributing
approximately $0.05 - $0.07 in diluted EPS in 2012.
Founded in 1995 by Thomas Alberga, SM Canada’s sole business is
operating as the licensee for Steve Madden in Canada for wholesale
and retail distribution of footwear and accessories under Steve
Madden’s various brand names. SM Canada currently operates 7 Steve
Madden-branded retail stores. Net sales for SM Canada for the
twelve months ended July 31, 2011 totaled approximately $32 million
(unaudited).
Edward Rosenfeld, Chairman and Chief Executive Officer,
commented, “Canada is a strong and growing market for the Steve
Madden brand. Upon the completion of this transaction, we intend to
enhance our presence in major department stores and specialty
stores, expand our portfolio of Steve Madden stores and further
build the infrastructure to support a growing business. Tommy
Alberga and his team have been instrumental in building the
business in Canada, and we look forward to our continued
partnership as we enter the next stage of growth in Canada.”
Thomas Alberga, founder and Chief Executive Officer of SM
Canada, stated, “Since establishing SM Canada in 1995, we have
achieved great success in developing the Steve Madden business in
this market. I believe that with the additional investment we will
have the opportunity to further capitalize on this strong growth
opportunity, and I look forward to working with the Steve Madden
team in building upon the brand’s strong momentum in Canada.”
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, Big
Buddha, Wild Pair and Cejon, 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 84 retail stores (including
the Company's online store). 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.
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