Footwear and accessories business Steve Madden is to buy its Canadian licensee in a deal worth about US$29m.

The acquisition of privately-owned SM Canada comprises businesses including Steve Madden Canada, Steve Madden Retail Canada, Pasa Agency and Gelati Imports.

SM Canada is responsible for marketing Steve Madden products in Canada in the wholesale sector, as well as supplying seven branded retail stores.

The purchase price is subject to a working capital adjustment, plus earn-out provisions based on financial performance up until March 2017. SM Canada recorded net sales of about $32m in the year to 31 July 2011.

“Canada is a strong and growing market for the Steve Madden brand,” said Steve Madden chairman and CEO Edward Rosenfeld.

“Upon completion of this transaction, we intend to enhance our presence in major department stores and specialty stores, expand our portfolio of Steve Madden stores and further build the infrastructure to support a growing business.”