Shoe Carnival acquires Shoe Station for $67 million
Shoe Carnival has expanded its footprint via an acquisition.
The family footwear retailer said that it has acquired substantially all of the assets of privately held, family-owned Shoe Station, which operates 21 stores in five Southeastern states: Alabama, Florida, Georgia, Mississippi, and Louisiana. The assets were acquired for $67 million and funded through cash on hand.
The acquisition, the first in Shoe Carnival’s 43-year history, creates a complementary retail platform for the retailer to serve a broader customer base across both urban and suburban demographics. Shoe Station has a strong track record of capitalizing on emerging footwear fashion trends and introducing new brands to its customers, according to Shoe Carnival.
Shoe Carnival operates 377 stores in 35 states and Puerto Rico. With the addition of Shoe Station to its portfolio, the retailer expects to surpass 400 stores by the end of 2022. It is looking to double-digit new store growth in the years ahead.
“We are excited to welcome Shoe Station to the Shoe Carnival team,” said Mark Worden, who was promoted to president and CEO of Shoe Carnival earlier this year. “Coming on the heels of our best quarter of our best year in our 43-year history, this deal accelerates our journey toward becoming a multi-billion dollar retailer in the years ahead.”
Shoe Station president and CEO G. Brent Barkin, will become the combined company’s senior VP, new business development & integration, reporting to Worden. Barkin will continue to lead Shoe Station while focusing on new business growth opportunities for the combined company.
“Shoe Carnival brings infrastructure and financial backing to significantly accelerate our Shoe Station brand growth,” said Barkin. “Taken together, the two brands create a winning customer value proposition.”
The transaction is expected to be immediately accretive to diluted net income per share in fiscal 2022, contributing approximately $100 million in incremental net sales, with operating income exceeding 10 percent on a normalized basis. After the close of this acquisition, the company will have more than $100 million in cash on hand, consistent with cash reserves from the same period in fiscal 2020.
“Brent and his team share our values and vision for the future of family footwear retail,” added Worden. “Together, we are ready to create a multi-billion dollar company, defined and driven by traits that made us industry leaders today. We look forward to building on our joint success as we continue our growth trajectory and driving significant long-term value for all of our stakeholders.