The footwear company said it bought Almost Famous in a $52 million cash deal on Monday.
Almost Famous has been the exclusive licensee of the Madden NYC apparel line since its launch in 2022 and also makes private label goods for mass merchants, department stores and off-pricers.
For the year ended Sept. 30, the private company logged revenues of about $163 million. The purchase price is subject to a working capital adjustment and also an earn-out based on financial performance.
Edward Rosenfeld, chairman and chief executive officer of Steve Madden, said the deal would “enhance our apparel platform.”
“With its expertise in junior apparel and strength in value-priced channels, Almost Famous is a strong complement to our existing Steve Madden apparel business, which is focused on contemporary styling and is primarily distributed in department stores and e-commerce retailers,” Rosenfeld said.
Former owners Peter Kossoy and Robbie Regina serve as co-presidents of Almost Famous and said, “We are proud of what we’ve built at Almost Famous and look forward to partnering with Steve Madden to take the business to new heights in the coming years.”
Steve Madden has grown through acquisition before, for instance, by buying up the debt of Betsey Johnson and then taking control of the company in 2010. And in 2019, the company bought the digital native Greats sneaker brand.
Like other fashion companies this year, Steve Madden has confronted a choppy market that’s had wholesale partners keeping cautious with their orders.
Rosenfeld told analysts on a conference call in August, “We will remain focused on executing our strategy for long-term growth, the foundation of which is driving closer connections with consumers through the combination of consistently trend-right product assortments and effective consumer engagement.”
The CEO pinpointed four long-term business drivers, including:
- Building the direct-to-consumer business, with a particular emphasis on digital.
- Expanding in categories outside of footwear, including handbags and apparel.
- Growing in international markets.
- Strengthening the core U.S. wholesale footwear business.