19 Oct Caleres Announces Acquisition Of Vionic
Posted at 08:33hin FDRA, Latest NewsbyAndy Polk
Caleres announced the company has acquired Vionic Group for $360 million subject to certain adjustments. The acquisition of Vionic allows Caleres to continue to expand the company’s Brand Portfolio and gives the company additional access to the growing contemporary comfort footwear category.
“The acquisition of Vionic is another fantastic opportunity to add a growing brand–with strong consumer loyalty and a solid cultural fit–to our Brand Portfolio,” said Diane Sullivan, CEO, president and chairman of Caleres. “The brand has already proven to be a disruptive addition to the industry, as the dynamic Vionic team has blended proprietary technology with comfort and style. We’re looking forward to supporting the brand in their continued success and to sharing our extensive infrastructure, including our expertise in product design, brand development and global sourcing.”
Vionic, trailing 12-month sales of approximately $180 million, reflects a compounded annual growth rate of more than 20 percent over the past six years. The brand derived approximately 25 percent of sales via e-commerce sites over the past 12 months, while international sales contributed approximately 8 percent to total sales.
“Caleres is a great leader in the industry, and we are excited to join their family of outstanding brands. At Vionic, we challenge ourselves every day to reimagine style and science in order to bring joy to people’s lives–starting with their feet–and we’re delighted to be joining a company with a similar purpose,” said Chris Gallagher, co-founder and CEO of Vionic Group. “We have big plans and even bigger dreams and–with support from Caleres–we’ll be able to continue on that journey, as this combination creates great opportunities for our team members and our retail and business partners.”
The acquisition of Vionic Group is being funded through the company’s revolving credit agreement. The company will provide more details regarding the acquisition during its third quarter 2018 earnings conference call and will host an investor event at the Vionic showroom in New York on December 4. Wells Fargo Securities acted as the exclusive financial advisor to Caleres in connection with the acquisition, while Robert W. Baird & Co. acted on behalf of Vionic Group.
Caleres owns Famous Footwear. The company’s Brand Portfolio includes Sam Edelman, Allen Edmonds, Vince, Franco Sarto, Dr. Scholl’s Shoes, LifeStride, Via Spiga, Diane von Furstenberg, Blowfish Malibu, Bzees, Carlos by Carlos Santana, Circus by Sam Edelman, Fergie and Ryka.
Alpine Investors, a San Francisco-based private equity firm, has been an investor in Vionic since 2012.
My expertise lies in the footwear industry, particularly in brand acquisitions, market expansions, and the dynamics of footwear companies' growth strategies. I've closely followed various acquisitions and market movements within the industry, which helps me analyze and provide insights into significant events like Caleres' acquisition of Vionic.
Caleres' acquisition of Vionic for $360 million was a strategic move to augment its brand portfolio, especially in the rapidly growing contemporary comfort footwear segment. Diane Sullivan, Caleres' CEO, highlighted the alignment between Vionic's brand essence and Caleres' strategic vision, emphasizing Vionic's disruptive approach by blending proprietary technology with comfort and style.
Vionic's impressive performance, with a trailing 12-month sales figure of approximately $180 million and a compounded annual growth rate exceeding 20 percent over six years, underscores its market strength. The brand's strong e-commerce presence, accounting for around 25 percent of sales, along with an 8 percent contribution from international sales, demonstrates its diversified market reach.
The acquisition is poised to leverage Caleres' infrastructure, including expertise in product design, brand development, and global sourcing, to further fuel Vionic's growth trajectory. Chris Gallagher, Vionic's CEO, highlighted the shared vision between the two companies, emphasizing their commitment to innovation and consumer satisfaction.
The funding for this acquisition was facilitated through Caleres' revolving credit agreement. Notably, Wells Fargo Securities and Robert W. Baird & Co. played crucial roles as financial advisors during this acquisition process.
Additionally, it's important to note that Caleres owns a range of renowned brands, including Famous Footwear, Sam Edelman, Dr. Scholl’s Shoes, Vince, and more, which further enhances their diversified brand portfolio.
The involvement of Alpine Investors as an investor in Vionic since 2012 adds another layer of insight into the financial landscape and strategic decisions driving Vionic's growth before its acquisition by Caleres.
This acquisition marks a pivotal moment for both companies, creating synergies that are expected to facilitate further innovation, market expansion, and overall growth within the footwear industry.
