- Prachi Singh |
DSW Inc. has announced the acquisition of operations of Camuto Group, known for its Vince Camuto brand and the footwear licenses of Jessica Simpson and Lucky Brand. Additionally, the company said, DSW along with Authentic Brands Group LLC (ABG), have jointly acquired several intellectual property rights from the Camuto Group under a new partnership for a total consideration of approximately 375 million dollars.
Commenting on the development, DSW’s CEO Roger Rawlins said in a statement: "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."
DSW and ABG acquire Camuto Group
The Camuto Group will maintain its existing Connecticut headquarters and will manage its dedicated wholesale and third-party design relationships independently of DSW's retail business. Also Camuto Group's Chief Executive Officer Alex Del Cielo will continue to lead the organization.
"The partnership with DSW and ABG creates an unmatched opportunity for the Camuto Group to expand the platform for our leading lifestyle brands. Having collaborated with DSW for many years, we respect their ability to grow a business through strategic leadership and innovation," added Alex Del Cielo.
Under the terms of the agreement, DSW said, it will contribute approximately 200 million dollars to acquire all of Camuto Group's global production, sourcing and design infrastructure, including operations in Brazil and China, state-of-the-art distribution center in New Jersey, in addition to existing working capital of approximately 100 million dollars. The company will also acquire the licensing rights for the Jessica Simpson footwear business, as well as the footwear and handbag licenses for Lucky Brand and Max Studio as well as joint venture participation in the ED Ellen DeGeneres and Mercedes Castillo brands currently managed by the Camuto Group.
ABG to acquire 60 percent stake in Camuto proprietary brands
DSW will also contribute approximately 56 million dollars to acquire a 40 percent stake in the intellectual property of Camuto Group's proprietary brands with Authentic Brands Group taking the majority state of 60 percent. Brands include Vince Camuto, Louise et Cie, Sole Society, CC Corso Como, Enzo Angiolini and others. The partnership, DSW added, will focus on licensing the brands across existing lines in footwear, handbags and jewellery, and new category development with a focus on building out each brand's lifestyle offerings.
"Camuto Group's world-class sourcing arm combined with DSW Inc.'s operational expertise and ABG's proven know-how in brand building and marketing, provide a strong foundation for long-term growth,” Jamie Salter, Chairman and Chief Executive Officer of Authentic Brands Group further added to the statement.