Brown Shoe to sell basketball brand after only s - sportstextiles: Lea SportsTextiles

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Brown Shoe to sell basketball brand after only six months

26/08/2011
Footwear group Brown Shoe has agreed to sell its AND 1 basketball brand to Galaxy International, a newly-formed brand management company, for $55 million in cash. The transaction is expected to close within 45 days and is subject to customary closing conditions and Galaxy obtaining financing. Brown Shoe plans to use the proceeds from the sale of AND 1 to pay down debt.

AND1 was part of the American Sporting Goods (ASG) acquisition that Brown Shoe completed on February 17, 2011, for $145 million in cash and assumed debt. For its most recently completed fiscal year, ASG achieved net sales of $232 million, and this amount excludes all licensed product sales.

“Our goal with the ASG acquisition was to better position Brown Shoe to meet the continued and growing consumer demand for products that support active and healthy lifestyles,” said Diane Sullivan, president and chief executive officer of Brown Shoe. “AND 1 is a great brand with a strong heritage, however, it did not cleanly align with our strategy to focus on the key consumer platforms of healthy living, contemporary fashion and family.”

AND 1 shoes are distributed in 68 countries worldwide; Galaxy International believes it can expand this further.

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