Genesco buys Schuh for £100m
US-based footwear and sports apparel retailer Genesco has acquired UK-based fashion footwear retailer Schuh Group for £100 million pounds ($161.9 million) to boost its presence internationally.
“We are pleased with the strength of our US based businesses and look forward to presenting an updated outlook for the balance of the year, including Schuh, when we announce our second quarter results in August,” said Genesco chairman and president, Robert J. Dennis.
Genesco said it funded the initial payment and associated costs of the Schuh acquistion with borrowings under a pre-existing $89 million credit facility, with the rest paid from cash on hand.
Scotland-based Schuh, which operates 59 stores in the UK and throughout the Republic of Ireland, posted net sales of £164 million for the year ending March 27, with an operating margin of over 9%.
“Schuh provides us with an immediate and established retail presence in the United Kingdom, a highly experienced international management team, and improved insight into global fashion trends,” added Dennis.
