Fashion Group Aldo Acquired Camuto Footwear And Accessories Business

According to the world clothing shoes and hats net, this Wednesday, Canada

And accessories retail group Aldo Group Inc. (hereinafter referred to as Aldo) announced the acquisition of famous shoe brand.

Founded by Vince Camuto, founder of (Nine West)

Footwear and accessories business under group Camuto Group (hereinafter referred to as Camuto).

The Camuto family will continue to own and operate the group's clothing business.

Camuto CEO Alex Del Cielo will continue to serve and report to Aldo CEO David Bensadoun.

The terms of the paction are not disclosed.

The source said the purchase price was 2.5 billion.

"This is a reasonable price, although it looks very low," an industry insider said.

Another financial expert said, "Aldo has to complete this paction because it has not many ways to grow business now."

The source pointed out that the price is within the expected range. The Aldo family is cautious and strict in terms of mergers and acquisitions, and will not conclude pactions at too high prices.

Camuto was founded by Vince Camuto in 2001, providing footwear design, R & D and distribution resources for retailers, covering more than 30 categories: footwear, sportswear, dress, handbags, jewelry, swimwear, perfume and men's clothing.

The founder of Vince Camuto was also the founder of Jiu Xi Nine West, one of the most famous and successful footwear brands in the last 80 to 90s of last century.

He built billions of dollars in fashion business empire, covering several brands, spanning all kinds of products, and having his own brand name shop.

Unfortunately, Vince Camuto died at the age of 78 in January at a home in Connecticut, US, in 2015.

After that, Alex Del Cielo succeeded to CEO.

The acquisition is expected to significantly enhance Camuto capabilities and coverage, and enhance the capacity of private stores, franchised stores, online and wholesale distribution channels to provide a wide range of footwear, handbags and accessories.

The paction is also a signal that scale is becoming more and more important for enterprises.

Big businesses can only cope with rising electricity providers, shopping preferences, changing millennials and slowing store traffic.

In order to build a more fashionable empire with more business, Aldo has also joined the ranks of mergers and acquisitions.

Other major mergers and acquisitions in the near future include: last month, the us light luxury group Michael Kors Kors bought the UK luxury shoe brand Jimmy Choo for 1 billion 200 million US dollars (including debt 1 billion 350 million US dollars). In June, the us light luxury leather giant Coach Group acquired us light luxury brand Kate Spade for us $24 billion.

In addition to traditional retailers, the US electricity supplier giant Amazon is also stepping up its expansion of fashion business.

Recently, Amazon launched its own fashion accessories brand The Fix, and launched the "trial and buy" special service Prime Wardrobe.

One Click Retail's report on Amazon showed that its footwear sales increased 35% to $1 billion 600 million last year, while the footwear market rose by only 5% to 360 billion in the same period.

There is no doubt that competition from the electricity supplier stimulated Aldo to start gaining more market share.

Alex Del Cielo and David Bensadoun indicate that their merger will enhance Camuto's international and male business, while Aldo will benefit from Camuto sourcing, wholesale network and expertise in the US market.

Two private family businesses compete in different areas of the footwear market.

Aldo is a cheap brand that distributes mainly through its own stores to the international market.

Camuto and its luxury and fashion brands are priced at high prices, mainly through wholesale channels.

In terms of market positioning of Aldo and Camuto, David Bensadoun said: "the price positioning of Jessica Simpson is overlapped with Aldo and Call It Spring.

All other Camuto brands are priced above Aldo.

For example, the price tag of Aldo's high-heeled shoes is 90 dollars, and Vince Camuto sells for 110 dollars.

Under the agreement, Aldo acquired Camuto's footwear and accessories business, including the latter's brand and authorized operation of the brand business:

Camuto's brands include: Vince Camuto, Two By Vince Camuto, Louise etCie, Imagine Vince Vince and By;

Jessica Simpson's footwear and Lucky Brand footwear handbags business authorization;

And Alice + Olivia, Rebecca Minkoff have design and supply business cooperation, also for Tory Burch footwear business supply;

Joint venture with ED Ellen DeGeneres and Mercedes Castillo to produce high-end footwear.

Camuto also produces private label products for retailers such as Dillard s and Ann Taylor.

After the acquisition, Camuto will retain Bernard Chaus Inc. clothing business.

The company produces sportswear and dress for Vince Camuto, Chaus, Two by Vince Camuto, One State and other brands.

Chaus acquired Bernard Chaus Inc. in 2015. The company CEO Ariel is Ariel Chaus, and is still an independent company.

Alex Del Cielo said the Camuto group will continue to operate independently after the paction and will retain its Greenwich headquarters and Manhattan sales showroom.

When asked whether the merger of Aldo and Camuto was to make enterprises bigger and compete more effectively with rivals such as Amazon, David Bensadoun said: "I am not sure.

We really see this acquisition as a way of growth.

We are proud of the growth of our two brands (Aldo and Call It Spring) in the international arena.

In addition to the authorized business, we also do some private brand work for customers such as Kohl s, DSW, Target and Gap.

18 months ago, we made a decision to start the M & a plan on the basis of organic growth.

The company's financial situation has now been able to expand its team and achieve international expansion through mergers and acquisitions. "

Sales of Aldo 1/3 come from the US market, 1/4 from the Canadian market and wide international market.

David Bensadoun said: "look at the international market, there are some incredible markets are growing rapidly, and there are also many opportunities.

We have only two brands before, and now we can bring more different things to the market. "

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David Bensadoun is most interested in Camuto. It has many powerful brands.

He said: "Vince Camuto brand is very good, they have similar Lucky Brand such a very good authorization business.

The team has a world-class team in design, product and procurement. "

In addition, David Bensadoun also said: "Aldo has the world's first-class ability to integrate fashionable men's shoes.

Although Camuto has a strong ability to purchase leather shoes, he doesn't get involved in men's shoes.

After the acquisition, the two sides will complement each other. "

Most of Aldo's production business has been completed in China, Vietnam and Portugal, and most of Camuto's production business has been completed in China, Brazil and Portugal.

According to David Bensadoun, only 5% of Camuto's sales are internationalized.

He said: "our focus is to push Camuto to internationalization.

We see tremendous opportunities. "

David Bensadoun said: "electricity providers account for 12% of Aldo retail sales, which is stronger than Camuto.

Aldo's Aldo and Call It Spring have 2600 stores in the world with sales revenue of US $1 billion 500 million.

David's Bensadoun declined to comment on whether the Camuto authorisation agreed to the acquisition.

He explained: "they are in an antitrust period and the paction is not over yet."

Alex Del Cielo added: "our authorized providers have a positive response and there is no objection to the contract."

Alice and Olivia President Deanna Berkeley said: "we chose Camuto as partners because of their high quality and innovative technology teams.

We believe that their strong corporate value is one of the reasons why Aldo bought them. "

When asked whether Louise Camuto was the chief creative officer, Alex Del Cielo said the paction had not yet been reached and personnel matters were to be determined.

Alex Del Cielo said: "Aldo is really excellent in the retail field, and Camuto is good at wholesale.

There are many complementary points for our future. "

Aldo Bensadoun, founder of Aldo, 78, opened a booth in Montreal Le Chateau clothing store in 1972 and opened her own business career.

Now he has retired, and the group is now in charge of his son, David Bensadoun.

But Aldo Bensadoun is still involved in the group business.

The financial sector is also optimistic about the deal.

Gilbert Harrison, chairman of Financo Inc., said: "Aldo is a well run company. They have built a huge brand in the world.

They have the ability to bring Camuto to the next stage of development. "

MMG Advisors co founder and senior management partner, Allan Ellinger, said: "I think this is another symbolic M & a paction, beyond the clothing category, affecting all aspects of the industry.

When you have two great brands, when you see two brand strategies, they can produce synergy, reduce daily expenses and share services.

This is also very meaningful for today's market.

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