NEW YORK (AP) — Steven Madden Ltd. is buying its privately held Canadian licensee for about $29 million as it looks to strengthen its presence in the growing Canadian market, the shoe and accessories maker said on Friday.
The deal includes Steve Madden Canada Inc., Steve Madden Retail Canada Inc., Pasa Agency Inc. and Gelati Imports Inc. The companies market Steven Madden products in Canada at the wholesale level and in seven Steve Madden stores.
At the wholesale level, the companies distribute products to department stores, specialty stores, luxury retailers, national chains and mass merchants in Canada.
The price of the transaction could be adjusted for working capital. The deal also calls for potential performance-related payments through March 31, 2017.
Steven Madden, which is based in New York, said that the acquisition is expected to add about 5 cents to 7 cents per share to its 2012 earnings.
In November Steven Madden reported that its third-quarter net income rose 39 percent, helped by acquisitions and improving demand for its shoes and handbags.
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