Steve Madden to buy Canadian licensee for $29 million
(Reuters) - Shoemaker Steve Madden (SHOO.O: Quote) said it will buy its privately held Canadian licensee, SM Canada, for $29 million in cash to expand its presence in the region.
The transaction is expected to add 5-7 cents per share to earnings in 2012, Steve Madden said in a statement.
SM Canada markets Steve Madden products in Canada and runs seven Steve Madden-branded stores.
Long Island City, New York-based Steve Madden said it will enhance its presence in major department and specialty stores and expand the number of branded outlets in Canada.
SM Canada had sales of about $32 million for the year ended July 2011, Steve Madden said.
In May last year, Steve Madden bought privately held Topline Corp for $55 million.
Shares of the company had closed at $39.26 on Thursday on the Nasdaq.
(Reporting by Ranjita Ganesan; Editing by Sreejiraj Eluvangal)
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