Three years after its initial investment in Edelman Shoe Inc., Brown Shoe Co. is now the sole owner of the brand founded by Sam and Libby Edelman in 2004.
The St. Louis-based firm said today it has acquired the remaining 50 percent of the label in a cash-and-stock deal valued at $39.6 million.
Sam and Libby Edelman will retain their respective roles as president and head of marketing. The couple will continue to work with Brown President and COO Diane Sullivan on strategy for the brand.
Brown purchased a 42.5 percent stake in Edelman in 2007 and expanded its ownership to 50 percent in 2008. Sam Edelman has grown to $60 million in sales since the brand’s inception six years ago, the companies said.
“Bringing Sam fully into the Brown Shoe family is a critical element in our contemporary fashion strategy, as we elevate our product design to provide a new group of consumers access to fashion across a variety of price ranges,” said Brown Shoe Chairman and CEO Ron Fromm. “We believe in the continued growth of this area of our business, for which the Sam Edelman brand will be a cornerstone.”
For his part, Sam Edelman said in a statement that the move was a “significant milestone” in the couple’s business.
“The support of an industry powerhouse like Brown Shoe … guarantees the longevity and integrity of our brand,” he said. “Our remarkable growth in such a short time shows how strongly the brand resonates with fashion-savvy women, and now we have the support to focus all our energy on design, product development and expansion to reach even more consumers.”
For more, check out the June 14 issue of Footwear News.