LONG ISLAND CITY, N.Y.--(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 Trendy Imports S.A. de C.V., Comercial Diecisiette S.A. de C.V., and Maximus Designer Shoes S.A. de C.V. (together, “SM Mexico”). As Steve Madden’s Mexican licensee, SM Mexico markets Steve Madden products in Mexico in the wholesale channel as well as in Steve Madden-branded retail stores.
The purchase is a cash transaction for approximately $15 million, subject to a working capital adjustment, plus repayment of a short term loan and an earn-out provision based on future financial performance. The transaction is expected to close in January of 2015 and is expected to be accretive, contributing approximately $0.02 – $0.03 in diluted EPS in 2015.
SM Mexico is a division of Grupo Dicanco, a distributor of licensed footwear brands in Mexico. Grupo Dicanco has held the exclusive license for wholesale and retail distribution of Steve Madden footwear and accessories since 2005. SM Mexico currently distributes products in leading department stores as well as 21 Steve Madden-branded retail stores. Net sales for SM Mexico for the twelve months ended July 31, 2014 totaled approximately $15.4 million (unaudited).
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “Mexico is a strong and growing market for the Steve Madden brand. Upon the completion of this transaction, we plan to enhance our presence in leading department stores, expand into new wholesale accounts, grow our portfolio of Steve Madden retail stores and introduce certain of our other brands into the Mexican market. Diego Candano and his team have done a tremendous job in building our Steve Madden brand in Mexico, and we look forward to working with them to capitalize on the significant long term growth opportunity in this region.”
Diego Candano, founder and Chief Executive Officer of SM Mexico, stated, “Since introducing the Steve Madden brand into Mexico in 2005, we have built a strong, loyal following for the brand and a business that is poised for growth. I look forward to working with the Steve Madden team to build upon the strong momentum we have created in Mexico.”
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®, Freebird by Steven®, Stevies®, Betsey Johnson®, Dolce Vita®, DV by Dolce Vita®, Brian Atwood®, B Brian Atwood®, Report Signature®, Report®, Big Buddha®, Wild Pair®, Cejon® and Mad Love®, the Company is the licensee of various brands, including Olsenboye® for footwear, handbags and belts and Superga® and l.e.i.® for footwear. 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 124 retail stores (including the Company's three Internet 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, luggage and bedding and bath products.