US: Brown Shoe sells Avia and Nevados brands for $74m
Brown Shoe said it will use the the proceeds from the sale to pay down debt
Footwear business Brown Shoe Company has sold its Avia and Nevados labels to brand acquisition and development firm Galaxy Brand Holdings for US$74m, and said it will use the proceeds to pay down debt.
“Although we were not actively marketing Avia for sale, it’s a great brand with a strong heritage that appealed to Galaxy Brand Holdings. As a result, they made an offer which we believe is in the best interest of our shareholders to accept,” explained Diane Sullivan, Brown Shoe president and CEO.
“We’re excited about continuing to expand and strengthen the Ryka brand, which is the most integral and relevant part of the ASG acquisition for Brown Shoe Company.”
As a result of the deal, Brown Shoe expects to incur a charge of $15-17m.
Galaxy Brand Holdings CEO Eddie Esses, meanwhile, said the company sees significant growth opportunities for the two brands in both domestic and international markets.
Brown Shoe, which bought Avia and Nevados as part of its American Sporting Goods (ASG) acquisition in February 2011, will keep the Ryka women’s athletic shoe brand along with others that were part of the deal. It sold the AND 1 brand, which was part of the ASG purchase, for $55m later that year.
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