14 Dec Caleres Acquires Allen Edmonds
Caleres, the parent of Famous Footwear as well as a number of wholesale brands including Sam Edelman and Franco Sarto, has acquired Allen Edmonds from Brentwood Associates for $255 million, subject to certain adjustments.
The acquisition of Allen Edmonds, a U.S.-based maker of men’s premium handcrafted leather footwear and accessories, will allow Caleres to expand its brand portfolio and firmly positions the company in men’s footwear.
“The addition of Allen Edmonds to the Caleres Brand Portfolio allows us to rapidly increase our exposure in men’s footwear, solidifying a new revenue stream to drive overall growth,” said Diane Sullivan, CEO, president and chairman of Caleres. “Allen Edmonds is a strong brand operating with a proven business model and we feel it is well-positioned for growth. Not only does Allen Edmonds have brand equity and a loyal customer base, its appeal extends beyond this base to yet untapped consumers. We think we’ve acquired one of the great gems in men’s footwear.”
“With nearly a century of heritage and innovation, Allen Edmonds is an ideal fit for Caleres,” said Paul Grangaard, president and CEO of Allen Edmonds. “As part of the company’s Brand Portfolio, we’ll be sharing our men’s footwear knowledge and expertise, while simultaneously benefitting from the brand development, materials sourcing, product development and design capabilities inherent in a much larger footwear organization.”
Caleres welcomes Allen Edmonds to its roster of men’s footwear, including George Brown Bilt, Vince and Dr. Scholl’s Shoes.
The acquisition of Allen Edmonds is being funded through existing cash and the company’s revolving credit agreement. The company will provide more details regarding the acquisition during its fourth quarter 2016 earnings conference call. Wells Fargo Securities acted as the exclusive financial advisor to Caleres in connection with the acquisition.
The company’s ur Contemporary Fashion brands include Sam Edelman, Franco Sarto, Vince, Via Spiga, George Brown Bilt, Diane von Furstenberg, Fergie Footwear and Carlos Santana. Naturalizer, Dr. Scholl’s, LifeStride, Bzees and Rykä represent its Healthy Living brands.