LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--Jan. 20, 2012--
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.
Source: Steve Madden
ICR, Inc.
Jean Fontana, 203-682-8200
Investor Relations
www.icrinc.com