Steve Madden Announces Definitive Agreement to Acquire Kurt Geiger
Steve Madden (SHOO) has announced a definitive agreement to acquire UK-based Kurt Geiger for £289 million in cash from private equity firm Cinven. Kurt Geiger, with estimated revenue of £400 million for the twelve months ended February 1, 2025, owns brands including Kurt Geiger London, KG Kurt Geiger, and Carvela.
The acquisition aligns with Steve Madden's strategic initiatives of expanding in international markets, accessories categories, and direct-to-consumer channels. Kurt Geiger operates footwear concessions within luxury department stores like Harrods and Selfridges in the UK. The transaction will be funded through committed debt financing and cash on hand, with closing expected in Q2 2025, subject to regulatory approvals.
Steve Madden (SHOO) ha annunciato un accordo definitivo per acquisire la società britannica Kurt Geiger per 289 milioni di sterline in contante dalla società di private equity Cinven. Kurt Geiger, con un fatturato stimato di 400 milioni di sterline per i dodici mesi conclusi il 1 febbraio 2025, possiede marchi tra cui Kurt Geiger London, KG Kurt Geiger e Carvela.
L'acquisizione si allinea con le iniziative strategiche di Steve Madden di espandersi nei mercati internazionali, nelle categorie di accessori e nei canali di vendita diretta al consumatore. Kurt Geiger gestisce concessioni di calzature all'interno di grandi magazzini di lusso come Harrods e Selfridges nel Regno Unito. La transazione sarà finanziata attraverso finanziamenti a debito impegnati e liquidità disponibile, con la chiusura prevista nel secondo trimestre del 2025, soggetta ad approvazioni normative.
Steve Madden (SHOO) ha anunciado un acuerdo definitivo para adquirir la empresa británica Kurt Geiger por 289 millones de libras en efectivo de la firma de capital privado Cinven. Kurt Geiger, con unos ingresos estimados de 400 millones de libras para los doce meses que terminaron el 1 de febrero de 2025, posee marcas como Kurt Geiger London, KG Kurt Geiger y Carvela.
La adquisición se alinea con las iniciativas estratégicas de Steve Madden de expandirse en mercados internacionales, categorías de accesorios y canales de venta directa al consumidor. Kurt Geiger opera concesiones de calzado dentro de grandes almacenes de lujo como Harrods y Selfridges en el Reino Unido. La transacción se financiará a través de financiamiento de deuda comprometido y efectivo disponible, con un cierre esperado en el segundo trimestre de 2025, sujeto a aprobaciones regulatorias.
스티브 매든 (SHOO)은 영국 기반의 커트 가이거를 2억 8,900만 파운드에 인수하기 위한 최종 계약을 발표했습니다. 커트 가이거는 2025년 2월 1일로 종료되는 12개월 동안 약 4억 파운드의 수익을 예상하고 있으며, 커트 가이거 런던, KG 커트 가이거 및 카르벨라와 같은 브랜드를 소유하고 있습니다.
이번 인수는 스티브 매든의 국제 시장, 액세서리 카테고리 및 소비자 직접 판매 채널 확장 전략과 일치합니다. 커트 가이거는 영국의 하로즈 및 셀프리지와 같은 고급 백화점 내에서 신발 매장을 운영합니다. 거래는 약정된 부채 자금 조달과 현금으로 자금을 조달할 예정이며, 규제 승인을 조건으로 2025년 2분기에 마무리될 것으로 예상됩니다.
Steve Madden (SHOO) a annoncé un accord définitif pour acquérir la société britannique Kurt Geiger pour 289 millions de livres en espèces auprès de la société de capital-investissement Cinven. Kurt Geiger, avec un chiffre d'affaires estimé à 400 millions de livres pour les douze mois se terminant le 1er février 2025, possède des marques telles que Kurt Geiger London, KG Kurt Geiger et Carvela.
L'acquisition s'inscrit dans les initiatives stratégiques de Steve Madden visant à s'étendre sur les marchés internationaux, dans les catégories d'accessoires et dans les canaux de vente directe aux consommateurs. Kurt Geiger exploite des concessions de chaussures dans des grands magasins de luxe tels que Harrods et Selfridges au Royaume-Uni. La transaction sera financée par un financement par emprunt engagé et des liquidités disponibles, avec une clôture prévue au deuxième trimestre de 2025, sous réserve des approbations réglementaires.
Steve Madden (SHOO) hat eine endgültige Vereinbarung zur Übernahme des britischen Unternehmens Kurt Geiger für 289 Millionen Pfund in bar von der Private-Equity-Firma Cinven bekannt gegeben. Kurt Geiger, dessen geschätzter Umsatz für die zwölf Monate bis zum 1. Februar 2025 400 Millionen Pfund beträgt, besitzt Marken wie Kurt Geiger London, KG Kurt Geiger und Carvela.
Die Übernahme steht im Einklang mit den strategischen Initiativen von Steve Madden zur Expansion in internationalen Märkten, in den Zubehörkategorien und in den Direktvertriebskanälen. Kurt Geiger betreibt Schuhkonzessionen in Luxus-Kaufhäusern wie Harrods und Selfridges im Vereinigten Königreich. Die Transaktion wird durch zugesagte Fremdfinanzierung und verfügbare liquide Mittel finanziert, wobei der Abschluss im 2. Quartal 2025 erwartet wird, vorbehaltlich der behördlichen Genehmigungen.
- Acquisition adds £400 million in revenue to Steve Madden's portfolio
- Expands international presence in UK luxury retail market
- Strengthens accessories and direct-to-consumer channels
- Access to premium retail locations through Kurt Geiger's department store concessions
- Significant cash outlay of £289 million may impact balance sheet
- Increased debt burden through financing requirements
- Integration risks between US and UK operations
Insights
This £289 million ($364 million) acquisition marks a transformative moment for Steve Madden, representing approximately 13.4% of its current market capitalization. Kurt Geiger's £400 million ($504 million) in annual revenue would significantly boost Steve Madden's top line, potentially adding about 25% to its current revenue base.
The strategic rationale is compelling on multiple fronts. First, this acquisition provides immediate scale in the UK luxury footwear and accessories market, where Kurt Geiger holds premium positioning through its concessions in Harrods and Selfridges. These high-end retail partnerships are particularly valuable as they're difficult to replicate and provide steady, high-margin revenue streams.
The transaction's enterprise value appears reasonable given Kurt Geiger's revenue and market position, suggesting an EV/Revenue multiple of approximately 0.72x. This is notably lower than typical luxury retail acquisitions, which often command multiples of 1.5-2x revenue, indicating potential value creation opportunity.
The decision to finance through debt and cash on hand demonstrates financial prudence. With current interest rates, the debt financing component could impact Steve Madden's interest coverage ratios, but the company's historically strong cash flow generation should provide adequate coverage.
A critical aspect is the potential for operational synergies. Steve Madden's global infrastructure could accelerate Kurt Geiger's international expansion, particularly in North America, while Kurt Geiger's premium market expertise could enhance Steve Madden's positioning in higher-end segments. The combined entity would benefit from increased bargaining power with suppliers and potential cost optimizations in logistics and operations.
However, investors should monitor several risk factors: currency exposure given the pound sterling transaction and revenue base, integration challenges in merging different corporate cultures, and the execution risk of managing a premium British brand from a U.S. base. The success of this acquisition will largely depend on maintaining Kurt Geiger's brand equity while leveraging Steve Madden's global distribution network.
LONG ISLAND CITY, N.Y., Feb. 13, 2025 (GLOBE NEWSWIRE) -- Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion footwear, accessories and apparel, today announced that it has entered into a definitive agreement to acquire UK-based Kurt Geiger from a group led by international private equity firm Cinven for an enterprise value of approximately
Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden, commented, “With this acquisition, we are excited to add Kurt Geiger London, a brand that has exhibited exceptional growth over the last several years. Kurt Geiger London’s unique brand image, high-quality and statement-making styles and compelling value proposition have driven success across multiple product categories, led by handbags. Its differentiated and elevated positioning within the market – and its alignment with our strategic initiatives of expanding in international markets, accessories categories and direct-to-consumer channels – make this a highly attractive and complementary addition to our portfolio.”
Neil Clifford, CEO of Kurt Geiger, added, “We couldn’t be prouder of the progress our team has made over the last few years in building Kurt Geiger London into a globally recognizable fashion brand. It’s been gratifying to see how consumers have responded to our unique design aesthetic and strong British DNA. While we’ve delivered remarkable growth in recent years, we believe we are in the early stages of our growth journey, with significant expansion opportunities available to us. With its global infrastructure and proven track record of supporting and growing its brands, we believe Steve Madden is the right strategic partner to help us reach our potential.”
Steve Madden, Founder and Creative and Design Chief of Steve Madden, commented, “When I started this company in 1990, I never dreamed we would be where we are today. Owning Dolce Vita, one of the most talked about brands in America, Betsey Johnson and ATM Collection, and now being able to partner with Kurt Geiger, is one of the great accomplishments of my career. The brand is doing better and better every year, and the opportunity to collaborate with them is thrilling. I get goosebumps just thinking about it.”
In addition to Kurt Geiger London, Kurt Geiger’s brand portfolio includes KG Kurt Geiger and Carvela. Kurt Geiger also operates footwear concessions within luxury and premium department stores in the United Kingdom, including Harrods and Selfridges, where it sells both its own and third-party brands. For the twelve months ended February 1, 2025, Kurt Geiger had estimated revenue of approximately
Transaction Details
The Board of Directors of Steve Madden has unanimously approved the transaction. Steve Madden intends to fund the transaction with a combination of committed debt financing and cash on hand. The transaction is anticipated to close in the second quarter of 2025, subject to the receipt of required regulatory clearance and other customary closing conditions.
Advisors
Solomon Partners, L.P. is serving as Steve Madden’s financial advisor, with Travers Smith LLP and Foley & Lardner LLP as legal advisors. BofA Securities is serving as Cinven’s financial advisor, with Freshfields LLP as legal advisor. Kinmont is serving as Kurt Geiger senior management’s financial advisor, with Addleshaw Goddard LLP as legal advisor.
About Steve Madden
Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo® and ATM®, Steve Madden licenses footwear, handbags and certain accessories for the Anne Klein® brand. In addition, Steve Madden designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers and independent stores. Steve Madden also directly operates brick-and-mortar retail stores and e-commerce websites. In addition, Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products in the apparel, accessory and home categories. For local store information and the latest boots, booties, fashion sneakers, dress shoes, sandals, and more, please visit www.stevemadden.com, www.dolcevita.com and the Company’s other branded websites.
Safe Harbor
This press release and oral statements made from time to time by representatives of the Company contain certain “forward looking statements” as that term is defined in the federal securities laws. The events described in forward looking statements may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of the Company’s plans or strategies, projected or anticipated benefits from acquisitions to be made by the Company, or projections involving anticipated revenues, earnings or other aspects of the Company’s operating results. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward looking statements. The Company cautions you that these statements concern current expectations about the Company’s future results and condition and are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projections upon which the statements are based. Factors which may affect the Company’s results include, but are not limited to, the risks and uncertainties discussed in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any one or more of these uncertainties, risks and other influences could materially affect the Company’s results of operations and financial condition and whether forward looking statements made by the Company ultimately prove to be accurate and, as such, the Company’s actual results, performance and achievements could differ materially from those expressed or implied in these forward looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact
Steven Madden, Ltd.
VP of Corporate Development & Investor Relations
Danielle McCoy
718-308-2611
InvestorRelations@stevemadden.com
PR Director
Chad Evans
720-240-7935
chadevans@stevemadden.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/24ca85c7-494e-4d6c-a123-677d6bed15b7
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