Steve Madden is buying up its Mexico-based licensee.
Executives expect that the $15 million acquisition of SM Mexico, which distributes and markets Steve Madden product in wholesale and retail stores, will boost efforts to grow the brand’s presence throughout the Mexican market.
The region is a lucrative one for Steve Madden, marked by net sales of $15.4 million by SM Mexico during the 12 months ending July 31, 2014.
Edward Rosenfeld, chairman and CEO, said the company plans to expand its presence in leading department stores, add new wholesale accounts and retail stores, and introduce some of its other brands to the area.
“Mexico is a strong and growing market for the Steve Madden brand,” Rosenfeld said in a statement.
“Since introducing the Steve Madden brand into Mexico in 2005, we have built a strong, loyal following for the brand and a business that is poised for growth,” added Diego Candano, founder and CEO of SM Mexico, in the same release.
SM Mexico is owned by footwear distributor Group Dianco, which has held the company’s exclusive license since 2005.
Three businesses that make up SM Mexico — Trendy Imports S.A. de C.V., Comercial Diecisiette S.A. de C.V., and Maximus Designer Shoes S.A. de C.V — will be included in the acquisition.
The sale is expected to close by January 2015.