US firm Brown Shoe Company has acquired athletic footwear maker American Sporting Goods Corporation (ASG) for US$145m in cash plus assumed net debt.

ASG will remain in its Aliso Viejo, California offices and report to Mark Lardie, Brown Shoe division president wholesale. ASG chief executive officer Jerry Turner will remain with Brown Shoe as a consultant for one year to assist Lardie with the transition and integration of the two companies.

Brown Shoe president and chief operating officer Diane Sullivan said: "Acquiring ASG adds the critical element of performance athletic footwear to our comfort and fitness offerings, better positioning Brown Shoe to meet consumer demand for products that support active and healthy lifestyles.

"We also gain talent with capabilities that can be applied across our enterprise – designers skilled in creating technical athletic footwear as well as sales and leadership teams experienced in reaching retail partners and consumers within the healthy living trend.

"Moreover, with the backing of Brown Shoe's strong balance sheet, sourcing organisation, technology platform and other resources, the entire ASG family of brands will have additional opportunities for growth and increased market share." 

For its most recently completed fiscal year, ASG reported net sales of $232m, the majority of which was attributed to its Avia, ryka and AND1 brands, with estimated earnings before interest, taxes, depreciation, and amortization ("EBITDA") of $29.6m.

Brown Shoe expects accretion of $0.10 - $0.12 per diluted share in 2011, excluding the impact of certain purchase accounting adjustments as well as transaction and integration costs. 

The transaction will be funded at closing entirely through borrowings under Brown Shoe's revolving credit agreement, which has been upsized by $150m to $530m by exercising the designated event accordion, while still providing for access to an additional $150m accordion.