Brown Shoe acquires outstanding stake in Edelman Shoe
Brown Shoe Company has acquired the remaining 50% interest in designer and marketer of fashion footwear Edelman Shoe from the company’s founders, Sam Edelman and Libby Edelman. Under the agreement, which closed on June 4, Brown Shoe will acquire the outstanding shares of Edelman Shoe for $39.6 million through a mix of cash and stock.
Brown Shoe's partnership with Edelman Shoe began in 2007 when it purchased a 42.5% investment, and expanded its ownership to a 50% stake in 2008.
Since the brand was established in 2004, Edelman Shoe has grown to $60 million in wholesale sales. The company launched the libby. edelman brand in 2008, and is in talks to expand the Sam Edelman brand into accessory and clothing categories including handbags, swimwear and eyewear.
Brown Shoe chairman and chief executive officer, Ron Fromm, said: "This is the next step of a tremendous partnership with Edelman Shoe, strengthening our commitment to a family of brands that continues to delight women with innovative design and new perspectives on modern style.
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. We believe in the continued growth of this area of our business, for which the Sam Edelman brand will be a cornerstone."
Sam and Libby Edelman will retain their respective roles as president of the Sam Edelman division and head of marketing, and will continue to be based in Edelman Shoe's Manhattan offices and design studios. Sam Edelman will continue to work directly with Brown Shoe president and chief operating officer, Diane Sullivan, on strategy and daily operations.
"This is a significant milestone in the history of Edelman Shoe, and in my and Libby's careers in footwear. The support of an industry powerhouse like Brown Shoe, with more than 130 years of expertise in building and marketing brands consumers love, guarantees the longevity and integrity of our brand. Our remarkable growth over 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. Libby and I see this as the most positive thing we could do for the brand, the company and our team mates," said Sam Edelman.
