DSW acquires 49% Town Shoes from AIMCo and other shareholders
DSW Inc. (NYSE: DSW) has closed its previously announced initial acquisition of Town Shoes Limited, the largest footwear and accessories retailer in Canada, for CDN $75.5 million or US $68.7 million in cash.
DSW acquired a 49.2% interest in Town Shoes from certain clients of Alberta Investment Management Corporation (AIMCo) and other minority shareholders. DSW’s initial announcement were for the 44% stake held by AIMCo for CDN $68 million.
DSW Inc.’s initial stake provides 50% voting control and board representation equal to the primary remaining shareholder, Callisto Capital.
Peter J. Solomon Company served as financial advisor to DSW Inc.
DSW will have the right to purchase the balance of Town Shoes from the Callisto Capital, after four years at a pre-determined EBITDA multiple.
Callisto Capital has the right to put the balance of the company to DSW after three years at a pre-determined EBITDA multiple.
Ted Liu Ted is an editor of CanadianPrivateEquity.com and Research Director for CVCA - Canada's Venture Capital and Private Equity Association. Ted has been following Canadian venture capital and private equity industry since 1993.