- Prachi Singh |
DSW Inc. has completed its previously announced acquisition of the operations of Camuto Group, known for its Vince Camuto brand and the footwear licenses of Jessica Simpson and Lucky Brand. Additionally, DSW and Authentic Brands Group LLC (ABG), have completed their acquisition of several intellectual property rights from the Camuto Group under a new partnership. Brands owned through the partnership include Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini among others.
"Our DSW, Shoe Company, Shoe Warehouse and leased footwear businesses have been steadily gaining market share through store expansion and comparable sales growth, and we've had recent successes in innovating experiences and service offerings," said DSW’s Chief Executive Officer Roger Rawlins in a statement, adding, "This acquisition allows us to capture more footwear transactions in new points of sale including at our own industry-leading DSW retail network and now in wholesale, brand-owned direct-to-consumer, as well as in licensing and international franchising."
DSW and Authentic Brands Group complete Camuto acquisition
The company added that total consideration paid to the Camuto Group was approximately 341 million dollars. DSW will be responsible for approximately 238 million dollars of the purchase price, which includes: 57 million dollars for a 40 percent stake in the intellectual property of Camuto Group's proprietary brands with Authentic Brands Group taking the majority stake of 60 percent, 181 million dollars contribution for Camuto Group's operations, consisting of approximately 60 million dollars of existing working capital, an estimated 35 million dollars of assets associated with Camuto Group's distribution center and the remaining 86 million purchasing the operations, talent, expertise and experience of Camuto Group.
“As one of our largest multi-brand acquisitions to date, the addition of the Camuto Group portfolio significantly grows ABG’s stake in the footwear and accessories market. We see incredible opportunity for expansion, both from a category and distribution standpoint, and plan to leverage our international expertise and network of best-in-class partners to propel these iconic brands into their next phase of global growth,” added Jamie Salter, Chairman and CEO of ABG.
DSW will operate Camuto Group as a separate, standalone business under the current management team led by Alex Del Cielo. As part of the transaction, DSW said, it will acquire Camuto Group's entire global production, sourcing and design infrastructure, including operations in Brazil and China, a new, state-of-the-art distribution center in New Jersey and a large amount of working capital consisting primarily of fresh branded inventory and accounts receivable.