Brown Shoe Company, Inc. entered into an agreement to sell And 1, the basketball footwear brand acquired through its purchase of American Sporting Goods, to Galaxy International, a newly-formed brand management company, for $55 million in cash. The transaction is expected to close within 45 days and is subject to customary closing conditions and Galaxy obtaining financing. Brown Shoe plans to use the proceeds from the sale of And 1 to pay down debt.

And 1, a global men's performance basketball and lifestyle brand, was part of the American Sporting Goods (ASG) acquisition that Brown Shoe completed on February 17, 2011, for $145 million in cash and assumed debt. This acquisition helped broaden Brown Shoe's reach by complementing its fitness and comfort offerings with athletic and outdoor brands, including Avia, Ryka and Nevados. For its most recently completed fiscal year, ASG achieved net sales of $232 million, and this amount excludes all licensed product sales.

“Our goal with the ASG acquisition was to better position Brown Shoe to meet the continued and growing consumer demand for products that support active and healthy lifestyles,” said Diane Sullivan, president and chief executive officer of Brown Shoe. “And 1 is a great brand with a strong heritage, however, it did not cleanly align with our strategy to focus on the key consumer platforms of healthy living, contemporary fashion and family.”

“And 1 is a highly recognized sports brand worldwide. Launched 20 years ago, the brand has strong consumer recognition and enormous growth potential in the footwear, apparel and accessory categories,” said an unidentified spokesperson for Galaxy International. “And 1 is currently distributed in 68 countries worldwide, and we look forward to tremendous global expansion opportunities to further cultivate the AND 1 brand. The acquisition of the AND 1 brand is part of Galaxy�€�s strategic growth plan.”

Galaxy International LLC is a New York-based brand acquisition and development firm recently founded by a team of industry veterans. The company was formed to acquire brands and other intellectual property in the apparel, footwear and accessory markets, which have broad, global, consumer appeal.