ST. LOUIS--(BUSINESS WIRE)--Caleres (NYSE: CAL, caleres.com),
a diverse portfolio of global footwear brands, today announced it has
acquired Allen Edmonds from Brentwood Associates for $255 million,
subject to certain adjustments. The acquisition of Allen Edmonds, a
U.S.-based maker of men’s premium handcrafted leather footwear and
accessories, will allow Caleres to expand its Brand Portfolio and firmly
positions the company in men’s footwear.
“The addition of Allen Edmonds to the Caleres Brand Portfolio allows us
to rapidly increase our exposure in men’s footwear, solidifying a new
revenue stream to drive overall growth,” said Diane Sullivan, CEO,
president and chairman of Caleres. “Allen Edmonds is a strong brand
operating with a proven business model and we feel it is well-positioned
for growth. Not only does Allen Edmonds have brand equity and a loyal
customer base, its appeal extends beyond this base to yet untapped
consumers. We think we’ve acquired one of the great gems in men’s
footwear.”
“With nearly a century of heritage and innovation, Allen Edmonds is an
ideal fit for Caleres,” said Paul Grangaard, president and CEO of Allen
Edmonds. “As part of the company’s Brand Portfolio, we’ll be sharing our
men’s footwear knowledge and expertise, while simultaneously benefitting
from the brand development, materials sourcing, product development and
design capabilities inherent in a much larger footwear organization.”
Caleres welcomes Allen Edmonds to its roster of men’s footwear,
including George Brown Bilt, Vince and Dr. Scholl’s Shoes.
The acquisition of Allen Edmonds is being funded through existing cash
and the company’s revolving credit agreement. The company will provide
more details regarding the acquisition during its fourth quarter 2016
earnings conference call. Wells Fargo Securities acted as the exclusive
financial advisor to Caleres in connection with the acquisition.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act of 1995
This press release contains certain forward-looking statements and
expectations regarding the company’s future performance and the
performance of its brands. Such statements are subject to various risks
and uncertainties that could cause actual results to differ materially.
These risks include (i) changing consumer demands, which may be
influenced by consumers’ disposable income, which in turn can be
influenced by general economic conditions; (ii) rapidly changing fashion
trends and purchasing patterns; (iii) intense competition within the
footwear industry; (iv) political and economic conditions or other
threats to the continued and uninterrupted flow of inventory from China
and other countries, where the Company relies heavily on third-party
manufacturing facilities for a significant amount of its inventory; (v)
the ability to accurately forecast sales and manage inventory levels;
(vi) cybersecurity threats or other major disruption to the Company’s
information technology systems; (vii) customer concentration and
increased consolidation in the retail industry; (viii) a disruption in
the Company’s distribution centers; (ix) the ability to recruit and
retain senior management and other key associates; (x) foreign currency
fluctuations; (xi) compliance with applicable laws and standards with
respect to labor, trade and product safety issues; (xii) the ability to
secure/exit leases on favorable terms; (xiii) the ability to maintain
relationships with current suppliers; (xiv) the ability to attract,
retain, and maintain good relationships with licensors and protect
intellectual property rights; and (xv) changes to federal overtime
regulations could increase the Company’s payroll costs. The company’s
reports to the Securities and Exchange Commission contain detailed
information relating to such factors, including, without limitation, the
information under the caption Risk Factors in Item 1A of the company’s
Annual Report on Form 10-K for the year ended January 30, 2016, which
information is incorporated by reference herein and updated by the
company’s Quarterly Reports on Form 10-Q. The company does not undertake
any obligation or plan to update these forward-looking statements, even
though its situation may change.
About Caleres
Caleres is a diverse portfolio of global footwear brands, which fit
people’s lives: Family, Healthy Living and Contemporary Fashion. Our
products are available virtually everywhere - in the over 1,200 retail
stores we operate, in hundreds of major department and specialty stores,
on our branded e-commerce sites, and on many additional third-party
retail websites. Famous Footwear and Famous.com serve as our Family
brands. Our Contemporary Fashion brands include Sam Edelman, Franco
Sarto, Vince, Via Spiga, George Brown Bilt, Diane von Furstenberg,
Fergie Footwear and Carlos Santana. Naturalizer, Dr. Scholl’s,
LifeStride, Bzees and Rykä represent our Healthy Living brands.
Combined, these brands help make Caleres a company with both a legacy
and a mission. Our legacy is our more than 130-years of craftsmanship,
our passion for fit and our business savvy, while our mission is to
continue to inspire people to feel good…feet first. Visit caleres.com
to learn more about us.
About Allen Edmonds
Founded in 1922, Allen Edmonds Corporation is a U.S.-based retailer of
premium men’s footwear, apparel, leather goods and accessories with a
focus on American manufacturing. Allen Edmonds’ famous Goodyear welted
shoes are handcrafted in Port Washington, Wis. using a 212-step
production process. Consistent with the company’s heritage, Allen
Edmonds remains committed to providing excellent products at exceptional
value for style and quality conscious men worldwide. By partnering
selectively with like-minded U.S. manufacturers, the company’s offering
includes men’s clothing and accessory needs from head to toe. Allen
Edmonds products are available at premier stores worldwide, including 70
company-owned Allen Edmonds stores across the United States, and online
at AllenEdmonds.com.
About Brentwood Associates
Brentwood Associates is a leading consumer-focused private equity
investment firm with a 30-year history of investing in leading
middle-market growth companies. Brentwood focuses on investments in
growing businesses where it is able to leverage its extensive experience
in areas such as: branded consumer products; multi-location strategies;
direct-to-customer marketing, including direct mail and e-commerce;
niche brands with specialty distribution; education; and business
services. Since 1984, Brentwood’s dedicated private equity team has
invested in over 50 portfolio companies with an aggregate transaction
value of over $6 billion. With significant experience in both investing
and brand building, Brentwood is a value-added partner with
entrepreneurs and senior management teams building world-class
companies. For more information about Brentwood, please visit www.brentwood.com.
