Brown Shoe sells Avia and Nevados brands for $74 million

Brown Shoe sells Avia and Nevados brands for $74 million

May 14–Brown Shoe Co. has pared two more brands, Avia and Nevados, that it acquired in early 2011 through its purchase of American Sporting Goods.

Clayton-based Brown Shoe said it sold the brands to New York-based Galaxy Brand Holdings for $74 million and plans to use the proceeds to pay down debt.

Brown Shoe acquired the two brands as part of its Feb. 2011 purchase of American Sporting Goods for $145 million and assumed debt. In October 2011, Brown Shoe sold the men’s basketball AND 1 brand, which it acquired through the American Sporting Goods deal, for $55 million. Brown Shoe said it plans to keep the Ryka women’s athletic footwear and other brands that were part of American Sporting Goods.

“Although we were not actively marketing Avia for sale, it’s a great brand with a strong heritage that appealed to Galaxy Brand Holdings,” Brown Shoe president and CEO Diane Sullivan said in a statement. “As a result, they made an offer which we believe is in the best interest of our shareholders to accept. We’re excited about continuing to expand and strengthen the Ryka brand, which is the most integral and relevant part of the ASG acquisition for Brown Shoe Company.”

The sale is expected to result in a charge of $15 million to $17 million in fiscal 2013, Brown Shoe said.

Brown Shoe operates nearly 1,300 Famous Footwear and Naturalizer retail stores. The company’s other brands include Naturalizer, Dr. Scholl’s Shoes, LifeStride, Via Spiga, Sam Edelman and Franco Sarto.