Steve Madden announced Tuesday that it has signed an agreement to acquire its Mexican licensee SM Mexico for approximately $15 million. The transaction will be finalized in January 2015.
SM Mexico markets Steve Madden product in Mexico in the wholesale channel and in 21 Steve Madden-branded retail stores, and has for nine years. Net sales for SM Mexico for the year ended July 31, 2014 totaled roughly $15.4 million.
Diego Candano, SM Mexico founder and chief executive officer, said, “Since introducing the Steve Madden brand into Mexico in 2005, we have built a strong, loyal following for the brand and a business that is poised for growth. I look forward to working with the Steve Madden team to build upon the strong momentum we have created in Mexico.”
Steve Madden chairman and chief executive officer Edward Rosenfeld described Mexico as a strong and growing market for the brand. Rosenfeld said, “Upon the completion of this transaction, we plan to enhance our presence in leading department stores, expand into new wholesale accounts, grow our portfolio of Steve Madden retail stores and introduce certain of our other brands into the Mexican market.” He added, “Diego Candano and his team have done a tremendous job in building our Steve Madden brand in Mexico, and we look forward to working with them to capitalize on the significant long term growth opportunity in this region.”