DSW, Authentic Brands Jointly Pay $375M for Camuto Group Assets

DSW and Authentic Brands Group plan to jointly acquire different pieces of the Camuto Group, which owns the rights to footwear brands including Vince Camuto, Jessica Simpson and Lucky Brand, the companies announced.

DSW will pay $200 million for Camuto Group’s global production, sourcing and design infrastructure, including operations in Brazil and China, a new state-of-the-art distribution center in New Jersey plus $100 million in working capital.

In addition, DSW will pay $56 million for a 40% stake in Camuto Group’s intellectual property including a number of brands including those above plus Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini and others. Authentic Brands will take the majority 60% stake; while a figure was not given, total consideration for the deal was listed at $375 million.

“The acquisition of Camuto Group is an exciting new growth opportunity for our company,” said DSW CEO Roger Rawlins in a release. “We recently expanded our customer reach in North America through our Canadian retail subsidiary, and this partnership transforms DSW Inc. into one of the largest footwear companies in North America with industry-leading capabilities in product design, development, sourcing, production and marketing.”

“We are thrilled to partner with DSW on this strategic purchase that significantly grows ABG’s stake in the footwear and accessories market,” said Jamie Salter, Chairman and CEO of Authentic Brands Group in the release. “Camuto Group’s world-class sourcing arm combined with DSW’s operational expertise and ABG’s proven know-how in brand building and marketing, provide a strong foundation for long-term growth.”

According to a report in Footwear News, some analysts were not as ecstatic, citing concerns about the complicated nature of the deal, Camuto’s financial challenges and its planned 2017 merger with Aldo Group that fell apart. DSW’s stock was down on the news.

The trade report also noted one analyst’s concern over the acquisition’s effect on Camuto’s relationship with retailers like Nordstrom, which resells several of its brands and competes with retailer DSW.

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