Steve Madden, Ltd just announced that it has signed a definitive agreement to acquire Trendy Imports S.A. de C.V., Comercial Diecisiette S.A. de C.V., and Maximus Designer Shoes S.A. de C.V. (together “SM Mexico”). As Steve Madden’s Mexican licensee, SM Mexico markets Steve Madden products in Mexico in the wholesale channel as well as in Steve Madden-branded retail stores.

The deal involves a cash transaction of approximately 15 million US dollars, subject to “a working capital adjustment, plus repayment of a short term loan and an earn-out provision based on future financial performance”. The transaction is expected to be completed by January of 2015, contributing approximately “0.02 US dollars to 0.03 US dollars in diluted EPS in 2015.

SM Mexico is a division of Grupo Dicanco, a distributor of licensed footwear brands in Mexico. Grupo Dicanco has held the exclusive license for wholesale and retail distribution of Steve Madden footwear and accessories since 2005. SM Mexico currently distributes products in leading department stores as well as 21 Steve Madden-branded retail stores. Net sales for SM Mexico for the twelve months ended on the 31st of July totaled approximately 15.4 million US dollars (unaudited).

Edward Rosenfeld, Chairman and Chief Executive Officer, commented: “Mexico is a strong and growing market for the Steve Madden brand. Upon the completion of this transaction, we plan to enhance our presence in leading department stores, expand into new wholesale accounts, grow our portfolio of Steve Madden retail stores and introduce certain of our other brands into the Mexican market.”

Diego Candano, founder and Chief Executive Officer of SM Mexico also commented on the deal: “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. I look forward to working with the Steve Madden team to build upon the strong momentum we have created in Mexico”.