Steve Madden acquired privately held Topline Corp for $55 million in cash, in a bid to bolster its private label footwear business. Topline reported 2010 net sales of about $189 million.
Founded in 1980, Topline sells its footwear primarily to specialty retailers and department stores. The company’s owned brands include Report, Report Signature and R2 by Report.
The transaction is expected to add 5-7 cents to earnings in its first full year under Steve Madden ownership after giving effect to the company’s recent 3-for-2 stock split.
The deal also includes an earn-out provision based on financial performance through June 30, 2012.
“Topline’s private label business is one of the best in our industry and is highly complementary to our existing private label footwear business,” Chief Executive Edward Rosenfeld said in a statement.
