Steven Madden To Acquire Mexico Licensee For $15 Mln - Quick Facts

(RTTNews) - Footwear retailer Steven Madden, Ltd. (SHOO) said it agreed to acquire SM Mexico, a division of Mexican footwear distributor Grupo Dicanco who has held the distribution license for Steve Madden's apparel for the past nine years.

Steven Madden expects the acquisition to add about $0.02 to $0.03 per share to earnings in 2015.

With this acquisition, Steven Madden aims to strengthen presence in department stores, gain new wholesale accounts, grow portfolio of retail stores and bring more brands into the Mexican market.

The purchase consideration is for around $15 million cash, subject to a working capital adjustment, repayment of a short term loan, and an milestone payment based on financial performance, the company said.

SM Mexico comprises of Trendy Imports S.A., Comercial Diecisiette S.A., and Maximus Designer Shoes S.A.

The acquisition is scheduled to close in January 2015.