Long Island City, NY—Steve Madden is expanding again, northward this time. The footwear and accessories company said today it plans to buy all assets of the privately held Steve Madden Canada business for $29 million.
The cash deal also includes Steve Madden Retail Canada, Pasa Agency Inc. and Gelati Imports together known as SM Canada, including the 7 Steve Madden-branded retail stores it operates in Canada.
Founded in 1995, SM Canada’s sole business is operating as the Canadian licensee for Steve Madden’s wholesale and retail distribution of footwear and accessories under Steve Madden’s various brands. Estimated sales for SM Canada for the 12-months ended July 31, 2011 are approximately $32 million, the company said.
“Canada is a strong and growing market for the Steve Madden brand,” noted Edward Rosenfeld, chairman/ceo at Steve Madden. “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.
Thomas Alberga, the ceo who also founded SM Canada, added: “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.”
Steve Madden said it expects the deal to be accretive, contributing about 5 cents to 7 cents in diluted earnings a share in 2012.