Genesco has signed a definitive asset purchase deal to take over New York-based Togast, which specialises in design, sourcing and sale of licensed footwear. Prior to the acquisition, Togast served as distributor for Levi's footwear in the United States. Genesco will also enter into a new US footwear license agreement for men, women and children for Levi's.
The purchase price for the acquisition is $33.7 million in cash at closing, plus up to an additional $34.0 million in cash contingent on the achievement of financial targets over the next four years. The purchase price paid at closing is expected to be funded from cash on hand. The transaction, which is subject to customary closing conditions, is expected to be completed in January 2020, and is expected to be accretive to next year's earnings.Genesco has signed a definitive asset purchase deal to take over New York-based Togast, which specialises in design, sourcing and sale of licensed footwear. Prior to the acquisition, Togast served as distributor for Levi's footwear in the United States. Genesco will also enter into a new US footwear license agreement for men, women and children for Levi's.#
Prior to the acquisition, Togast served as distributor for Levi's footwear in the United States. Commensurate with the closing of this transaction, Genesco will enter into a new US footwear license agreement for men, women and children for Levi's, as well as renew and extend its men's Dockers footwear license. The addition of privately owned Togast brings to Genesco new sources of revenue and synergistic product development and offshore sourcing capabilities, which complement and enhance Genesco's Licensed Brands division. In addition, the Togast purchase expands Genesco's portfolio to include footwear licenses for G H Bass, Adio and Fubu.
Genesco chairman, president and chief executive officer Robert J Dennis said, "The acquisition of Togast adds scale to our successful licensed brands platform. The combination of our licensed business with Togast's strengths furthers our footwear focused strategy by creating an even more robust platform within Genesco that can serve multiple tiers of distribution. We are also excited to add the Levi's footwear license to our portfolio and expand upon our long-standing business relationship with Levi Strauss, which dates back to 1991."
Genesco Licensed Brands president Andy Gilbert said, "We are pleased to broaden our portfolio of licensed footwear brands. We immediately recognised the sourcing capabilities and corresponding synergies with Licensed Brands that we would achieve through the acquisition of Togast, and I am personally excited to welcome Tony LoConte and his team to the Genesco family."
Tony LoConte, owner of Togast, added, "In Genesco, we have found a partner whose capabilities are an outstanding match for our business operations. I am looking forward to working with the Genesco team to integrate our businesses and together continue the growth of Genesco's branded partnerships in the future."
Fibre2Fashion News Desk (SV)
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