Brown Shoe Co. has acquired Aliso Viejo-based American Sporting Goods Corp. (ASG) for $145 million.
ASG manufactures and markets athletic, fitness and basketball footwear, including the Avia, rykä and AND1 brands. The company experienced net sales of $232 million in its most recent fiscal year. St. Louis-based Brown Shoe Co. is valued at $2.5 billion, and designs and markets brands such as Dr. Scholl's, Franco Sarto and Sam Edelman. The company's retail division also operates Famous Footwear and Naturalizer stores, as well as shoes.com.
The acquisition of ASG adds athletic footwear brands to Brown Shoe's comfort and fitness labels, and the deal is expected to help the latter "meet consumer demand for products that support active and healthy lifestyles," said Diane Sullivan, president and chief operating officer of Brown Shoe.
ASG ranked No. 7 in the U.S. performance athletic footwear market in 2010, according to the NPD's POS Tracking Service.
"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," said Sullivan.
ASG will remain in Aliso Viejo and its team will report to Mark Lardie, Brown Shoe division president – wholesale. ASG CEO Jerry Turner will remain with Brown Shoe as a consultant for one year.
"Through this acquisition, we gain valuable insight from a strong management team and a company with a heritage of connecting footwear brands with customers, which we expect will lead to the continued success and expansion of the ASG family of brands that we have built over decades," said Turner. "Brown Shoe is recognized for its ability to develop, grow and market footwear brands in a consumer-focused way, and this was at the core of our decision to make American Sporting Goods part of the Brown Shoe family."
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