DSW Inc. (NYSE: DSW) is buying a stake in Town Shoes for C$68 million (U.S. $62 million).
Town Shoes, headquartered in Toronto, sells footwear and accessories across Canada. The company operates through 182 retail locations.
DSW sells branded footwear and accessories for men, women and children. The company operates more than 400 stores.
"We have looked at Canadian entry options for some time and decided to acquire an existing operation with a long track record of success and to use this operation as a base from which we can establish the DSW brand in Canada," says Mike MacDonald, DSW CEO.
DSW, headquartered in Columbus, Ohio, is buying a 44 percent stake in the company from Alberta Investment Management Corp. Alberta, and investment fund, and Toronto middle-market private equity firm Callisto, will remain invested in the company. The deal was announced April 15 and is expected to close in May.
Peter J. Solomon Co. is DSW's financial adviser.
The company appointed a new CFO on May 17 - Mary Meixelsperger, who was formerly with Shopko Shoes, a discount shoe retailer.
DSW's purchase comes after several other consumer goods and retail deals. In March, Steve Madden Ltd. (Nasdaq: SHOO) bought the Brian Atwoodintellectual property and related rights. In February, Blackstone Group bought a stake in fashion house Gianni Versace SPA.
For more on the retail sector, see "Boutique Appeal."