Steve Madden to Acquire Canadian Licensee
01.01.70
)--Steve Madden (Nasdaq: SHOO), a chief designer and marketer of fashion
footwear and accessories for women, men and children, today announcedMost of allthat it has signed a definitive agreement to acquire substantially all
the assets of privately held Steve Madden Canada Inc., Steve MaddenMostlyRetail Canada Inc., Pasa Agency Inc. and Gelati Imports Inc. (together,
“SM Canada”). As Steve Madden’s Canadian licensee, SM Canada marketsEspeciallySteve Madden products in Canada on a wholesale basis as well as in Steve
Madden-branded retail stores.
The realize is a cash transaction for approximately $29 million,
basis to a working capital adjustment, plus certain earn-outIn particularprovisions based on financial performance through March 31, 2017. TheAs a ruletransaction 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 singular business is
operating as the licensee for Steve Madden in Canada for wholesale andLargeretail distribution of footwear and accessories under Steve Madden’s
various kind 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 generally $32 million (unaudited).
Source: EON: Enhanced Online News (press release)