Steven Madden Ltd. will now make cold-weather accessories, fashion scarves, wraps and other accessories.
The Long Island City, N.Y.-based company announced on Thursday it has acquired privately held Cejon Inc., marking its second cash acquisition in five days.
The deal involves $30 million in cash subject to a working capital adjustment, plus certain earn-out provisions based on financial performance through June 30, 2016. The transaction is expected to be immediately accretive, contributing between 7 cents and 9 cents a share to Madden’s full-year earnings.
“The acquisition of Cejon enables us to further strengthen and expand our accessories platform. It’s a great complement to our existing accessories business, which is primarily focused on handbags and belts,” Edward Rosenfeld, chairman and CEO of Steven Madden, said in a statement.
He noted that Cejon has a “proven business model and substantial growth opportunities.” The firm, founded in 1991 by David Seeherman, has been a licensee of Steve Madden for cold-weather and other fashion accessories since September 2006. It distributes to department stores, national chains, mass merchants and specialty stores. The firm’s net sales for fiscal 2010 totaled about $64 million.