Steve Madden has completed its acquisition of substantially all of the assets constituting the Zone 88 and Shakedown Street lines of SML Brands, LLC, a subsidiary of Aimee Lynn, Inc. SML Brands designs and markets primarily private label accessories, principally handbags, for mass merchants and mid-tier retailers.
The purchase price was $1.25 million, plus additional consideration for certain inventory. A portion of the purchase price was paid by assumption of certain liabilities of the seller. The balance of the purchase price was funded with cash on hand.
“SML Brands represents a great addition to our accessories business. We are pleased with our performance with private label product for the value priced channels in the footwear category and believe this acquisition will enable us to replicate that success in accessories. We expect the acquisition to add approximately $10 million to net sales and to be slightly accretive to earnings per share in fiscal 2009,” stated Edward Rosenfeld, chairman and CEO.
