5 Footwear Acquisition Targets In 2012
21.05.12
The footwear business is currently characterized by increasing material and distribution costs, and if these rising costs coincide with a softening market, some consolidation may be inevitable. U.S. shoe manufacturers and sellers in particular have been hurt by a conservative retailer appetite at home and worsening retail conditions in Europe. In a sign of things to come, privately-held U.K. footwear manufacturer R Griggs Group recently appointed investment bank Rothschild to determine market sentiment over a possible sale of the Dr. Martens brand.
The highest profile acquisition in the footwear sector in 2011 was that of Timberland by VF ( VFC ) for $2 billion in cash. Other transactions, which were more in the high-end segment, were the acquisition of Jimmy Choo shoes by Labelux Group from TowerBrook Capital Partners for an estimated $811 million and the purchase of U.K. shoe retailer Kurt Geiger by Jones Group ( JNY ) for $350 million. Smaller deals included the takeover of teen and young adult U.K. Schuh Group by Genesco ( GCO ) for $162 million and the purchase of American Sporting Goods by Brown Shoe ( BWS ) for $145 million.
Source: Seeking Alpha