Steven Madden Ltd. completed its $30 million buyout of the Cejon group of design and marketing companies.
The deal includes Cejon Inc., Cejon Accessories Inc. and New East Designs LLC. The companies design scarves, wraps, winter accessories and other items. Cejon, which had 2010 net sales of about $64 million, has been a licensee of Steve Madden for winter weather and other accessories since September 2006.
“The acquisition of Cejon enables us to further strengthen and expand our accessories platform,” Chairman and CEO Edward Rosenfeld said in a statement, adding that Cejon will complement the existing accessories business, which mostly concentrates on handbags and belts.
The all-cash transaction is subject to a working capital adjustment and some financial performance-based provisions for the period through June 30, 2016.
The acquisition is expected to add about 7 cents to 9 cents per share in the first full year under Steven Madden ownership after accounting for the company’s three-for-two stock split that was announced earlier this month.
