DSW Buys 44% Stake In Town Shoes - Quick Facts

(RTTNews) - Footwear and accessories retailer DSW Inc. (DSW) Tuesday said it has purchased a 44 percent interest in its peer Town Shoes Ltd. for C$68 million, or about US$62 million in current exchange rates, from Alberta Investment Management Corp. DSW expects the transaction to add to earnings in 2014, excluding one-time transaction expenses.

Town shoes operates 182 locations across Canada chiefly under Shoe Company, Shoe Warehouse and Town Shoes banners. It is predominantly owned by Alberta Investment Management Corp. on behalf of certain of its clients, and by private equity firm Callisto Capital.

In its fiscal year ended January 2014, Town shoes generated sales of C$291 million.

DSW's initial stake gives it 50 percent voting control and board representation, both of which are equal to that of Callisto. The transaction is expected to close in May 2014.