DSW taking over operations of Camuto Group
Courtesy: PRNewsfoto/DSW Inc
DSW, a leading North American footwear and accessories retailer, is taking over the operations of Camuto Group, the legendary product design and brand development organisation best known for the successful Vince Camuto brand and the footwear licenses of Jessica Simpson and Lucky Brand. DSW has signed a definitive agreement in this connection.
Additionally, DSW and Authentic Brands Group (ABG), a global brand development, marketing and entertainment company, have entered into a definitive agreement to acquire several intellectual property rights from the Camuto Group under a new partnership. Total consideration paid to the Camuto Group will be approximately $375 million.
The Camuto Group will maintain its existing Connecticut headquarters and will manage its dedicated wholesale and third-party design relationships independently of DSW's retail business. Camuto Group's chief executive officer Alex Del Cielo will continue to lead the organisation.
DSW chief executive officer Roger Rawlins states, "The acquisition of Camuto Group is an exciting new growth opportunity for our company. We recently expanded our customer reach in North America through our Canadian retail subsidiary, and this partnership transforms DSW into one of the largest footwear companies in North America with industry-leading capabilities in product design, development, sourcing, production and marketing. With our expertise and infrastructure, we're confident this partnership will expand our platform to pursue new market share opportunities and become integral to more consumer purchase decisions."
According to Camuto Group chief executive officer Del Cielo, "The partnership with DSW and ABG creates an unmatched opportunity for the Camuto Group to expand the platform for our leading lifestyle brands. Having collaborated with DSW for many years, we respect their ability to grow a business through strategic leadership and innovation. By leveraging DSW's resources, we will strengthen our wholesale business and bring to market an exciting and world-class direct-to-consumer experience that will grow our brand equity and customer demand across additional points of sale."
"I believe that our founder Vince Camuto would be excited about the transaction and view the opportunity as a way to extend the company's reach and realise his vision with an organisation he always respected," Del Cielo added.
"We are thrilled to partner with DSW on this strategic purchase that significantly grows ABG's stake in the footwear and accessories market," said Jamie Salter, chairman and chief executive officer of Authentic Brands Group. "Camuto Group's world-class sourcing arm combined with DSW's operational expertise and ABG's proven know-how in brand building and marketing, provide a strong foundation for long-term growth. Our partnership with DSW in particular is a game changer for ABG as we are now linked to a footwear authority whose sourcing and manufacturing expertise will extend across our portfolio."
The acquisition of Camuto Group is expected to deliver several benefits to DSW such as a healthy brand portfolio with attractive growth prospects in wholesale and direct-to-consumer that can leverage DSW's expertise and infrastructure, substantial growth in Camuto's third-party licensing and international distribution business in partnership with ABG, new revenue opportunities from a larger addressable market, a strategic partnership with ABG that leverages their expertise in brand management and marketing across various brands and platforms, and immediate access to a talent base in design, sourcing, marketing and sales to support the growth of DSW's exclusive brands over time.
Under the terms of the agreement, DSW will contribute approximately $200 million to acquire all of Camuto Group's global production, sourcing and design infrastructure, including operations in Brazil and China, a new, state-of-the-art distribution centre in New Jersey, in addition to existing working capital of approximately $100 million. DSW will also acquire the licensing rights for the Jessica Simpson footwear business, as well as the footwear and handbag licenses for Lucky Brand and Max Studio. (SV)
Fibre2Fashion News Desk – India