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Steve Madden completes acquisition of Big Buddha
12 Feb '10
2 min read
Steve Madden a leading designer and marketer of fashion footwear and accessories for women, men and children, announced that it has completed its acquisition of privately held Big Buddha, Inc., a designer and marketer of fashion-forward handbags. Founded by Jeremy Bassan in 2003, Big Buddha sells its trend-right handbags to specialty retailers, better department stores and online retailers. Big Buddha had net sales in 2009 of approximately $13 million (unaudited).
The acquisition was completed for $11 million in cash plus certain earn-out provisions that are based on financial performance through 2013. The transaction is expected to be immediately accretive, contributing approximately $0.05 in diluted EPS in 2010.
Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden, commented, "Big Buddha is a dynamic young brand that is a great complement to our current accessories portfolio. The handbags have generated a lot of buzz in the marketplace, and the brand has developed a loyal following among consumers. The business has clear opportunities for continued strong top line growth, and we look forward to using our resources at Steve Madden to help Big Buddha expand in new accounts, territories and categories."
Jeremy Bassan, Founder and Chief Executive Officer of Big Buddha, added, "I'm excited to begin working with Steve and the rest of the Steve Madden team. With our shared vision of developing creative and trend-right products at a great value, Big Buddha and Steve Madden are a perfect fit. I'm proud of what we've accomplished at Big Buddha so far. We are only scratching the surface of our potential, and Steve Madden is the ideal partner to help us get there."
Kramer Levin Naftalis & Frankel LLP acted as legal advisor for Steve Madden on the transaction. For Big Buddha, Financo, Inc. acted as financial advisor and Sonnenschein Nath & Rosenthal LLP acted as legal advisor.
The acquisition was completed for $11 million in cash plus certain earn-out provisions that are based on financial performance through 2013. The transaction is expected to be immediately accretive, contributing approximately $0.05 in diluted EPS in 2010.
Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden, commented, "Big Buddha is a dynamic young brand that is a great complement to our current accessories portfolio. The handbags have generated a lot of buzz in the marketplace, and the brand has developed a loyal following among consumers. The business has clear opportunities for continued strong top line growth, and we look forward to using our resources at Steve Madden to help Big Buddha expand in new accounts, territories and categories."
Jeremy Bassan, Founder and Chief Executive Officer of Big Buddha, added, "I'm excited to begin working with Steve and the rest of the Steve Madden team. With our shared vision of developing creative and trend-right products at a great value, Big Buddha and Steve Madden are a perfect fit. I'm proud of what we've accomplished at Big Buddha so far. We are only scratching the surface of our potential, and Steve Madden is the ideal partner to help us get there."
Kramer Levin Naftalis & Frankel LLP acted as legal advisor for Steve Madden on the transaction. For Big Buddha, Financo, Inc. acted as financial advisor and Sonnenschein Nath & Rosenthal LLP acted as legal advisor.
Steve Madden Ltd
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