LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--Jan. 30, 2017--
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 the acquisition of the privately held Schwartz &
Benjamin, Inc. family of companies (“Schwartz & Benjamin”), which
specialize in the design, sourcing and sale of licensed and private
label footwear. Founded in 1923, Schwartz & Benjamin distributes its
fashion footwear to wholesale customers, including better department
stores and specialty boutiques, as well as the retail stores of its
brand partners. Schwartz & Benjamin’s current brand partners include
Kate Spade, Rebecca Minkoff, Alice + Olivia and Avec Les Filles.
Schwartz & Benjamin also designs and sources private label footwear for
various retailers. Schwartz & Benjamin’s trailing twelve month net sales
as of December 31, 2016 were approximately $87.6 million (unaudited).
The acquisition was completed for cash at closing plus an earn-out
provision based on financial performance through January 31, 2023. The
transaction is expected to be approximately neutral to EPS (excluding
one-time transaction and integration costs) in fiscal 2017 and to be
accretive thereafter.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We
are very pleased to complete the acquisition of Schwartz & Benjamin, a
company known for its outstanding capability in designer and accessible
luxury footwear. We see opportunity to expand the business by combining
Schwartz & Benjamin’s strengths – which include premier execution in the
design and sourcing of high-quality footwear as well as a strong
portfolio of brand partners – with our proven business model and
infrastructure. We are particularly pleased that Chief Executive Officer
Danny Schwartz, Chief Creative Officer Barbara Schwartz and President
and Chief Operating Officer Steve Shapiro will remain with Schwartz &
Benjamin and continue to lead the business into its next phase of
growth.”
Danny Schwartz, Chief Executive Officer of Schwartz & Benjamin, added,
“We at Schwartz & Benjamin are excited to be joining forces with Steve
Madden. We are proud of our 93-year history of creating footwear that
satisfies the needs of our brand partners, wholesale clients and
consumers, and we look forward to continuing to do so for many years to
come with the added support and resources of Steve Madden. Barbara and I
are pleased that Schwartz & Benjamin will operate as a stand-alone
business with its current management team and employees, resulting in
the transaction being seamless to our valued clients and business
partners. Schwartz & Benjamin has tremendous opportunity for growth, and
we look forward to working with Steve Madden to help the company reach
its 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 own brands including Steve
Madden®, Dolce
Vita®, Betsey
Johnson®, Report®,
Big
Buddha®, Brian
Atwood®, Cejon®,
Blondo®
and Mad
Love®, Steve Madden is the licensee of various brands, including Superga®
for footwear in North America. Steve Madden also designs and sources
products under private label brand names for various retailers. Steve
Madden's wholesale distribution includes department stores, specialty
stores, luxury retailers, national chains and mass merchants. Steve
Madden also operates 186 retail stores (including Steve Madden's four
Internet stores). Steve Madden licenses certain of its brands to third
parties for the marketing and sale of certain products, including for
ready-to-wear, outerwear, intimate apparel, hosiery, jewelry, luggage
and bedding and bath products. For local store information and the
latest Steve Madden booties, pumps, men’s and women’s boots, dress
shoes, sandals and more, visit http://www.stevemadden.com/.
Safe Harbor
This press release and oral statements made from time to time by
representatives of the Company contain certain “forward looking
statements” as that term is defined in the federal securities laws. The
events described in forward looking statements 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 concern current expectations
about the Company’s future results and condition and 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 discussed in the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed
with the Securities and Exchange Commission. Any one or more of these
uncertainties, risks and other influences could materially affect the
Company's results of operations and financial condition and whether
forward looking statements made by the Company ultimately prove to be
accurate and, as such, 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 as
a result of new information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170130006006/en/
Source: Steve Madden
ICR, Inc.
Investor Relations
Jean Fontana/Megan Crudele
203-682-8200
www.icrinc.com