12 of the Top M&A Deals in Footwear, Fashion and Retail in 2023
Early predictions for 2023 said that mergers and acquisitions would likely be slow due to the high interest rates imposed by the Federal Reserve to curb inflation. But footwear and fashion companies did not get that memo.
This year brought a flurry of deals both big and small, including a blockbuster merger between Tapestry and Capri that’s poised to reshape the competitive fashion landscape.
More from Footwear News
Meanwhile, Authentic Brands Group snapped up legacy shoe brands Hunter Boots and Rockport, as well as the Boardriders portfolio of surf and skate labels. And as the year came to a close, the market saw two major retail fire sales starring Matches and Farfetch.
Below is a quick look at some of the most notable M&A deals that were announced* in 2023. (*Not all deals had closed as of press time.)
Tapestry & Capri to Form US Luxury Giant
In August, Tapestry Inc. revealed its plan to buy Capri Holdings Ltd. in a roughly $8.5 billion deal that could alter the fashion landscape and remake the world of accessible luxury. The acquisition, which is expected to close in early 2024, brings together Tapestry’s Coach, Kate Spade and Stuart Weitzman labels with Capri’s Michael Kors, Versace and Jimmy Choo brands to create a $12 billion giant. As FN sister publication WWD noted, it is the closest America has yet come to building a luxury branded portfolio powerhouse in the image of LVMH Moët Hennessy Louis Vuitton or Kering, which posted 79.2 billion euros in sales, and 20.35 billion euros in sales, respectively, for 2022.
Authentic Continues Buying Spree
Authentic Brands Group is arguably the most acquisitive fashion company in the U.S., and the New York-based firm added several new properties in 2023, including Hunter Boots, Vince and Rockport. Its most significant purchase, though, was for Boardriders (the parent of Quiksilver, Billabong, Roxy, RVCA, DC Shoes, Element, VonZipper, Honolua and Boardriders) for a reported $1.25 billion. When that deal closed in September, Authentic’s annual retail sales jumped to over $29 billion. And in the following months, it has signed numerous footwear licensing deals for its new brands, with companies including Aldo Group, Marc Fisher Footwear and Warson Brands.
Coupang Rescues Farfetch
Amid reports that Farfetch was headed for administration, the retail conglomerate — whose assets include Browns, New Guards Group, Stadium Goods, a stake in Neiman Marcus and its Platform Solutions IP — announced on Dec. 18 that it had found a lifeline. Asian firm Coupang agreed to pump $500 million in emergency funding into the company as part of a “pre-pack” administration process. The company will now be fully controlled by Coupang, though founder, CEO and chairman Jose Neves will remain on board. As part of the deal, Farfetch will be pulled off the New York Stock Exchange, and its agreement to purchase Yoox Net-a-porter from Richemont has been terminated.
Frasers Group Acquires Matches
On Dec. 20, Mike Ashley’s Frasers Group revealed it had purchased 100 percent of Matches in a deal valued at 52 million pounds, a fraction of the $1 billion price that private equity firm Apax was reported to have paid for it in 2017. According to FN sister publication WWD, the sale came after six years of poor management by Apax, which plowed millions into the store but fundamentally misunderstood what was required to run a luxury retailer. Matches CEO Nick Beighton is expected to continue running the company and “unlocking synergies” with Frasers, a premium fashion chain built on the ashes of the mid-market House of Fraser department stores.
Steve Madden Snaps Up Almost Famous
Steven Madden Inc. signaled a bigger move into the apparel space in October, when the footwear company announced it bought Almost Famous in a $52 million cash deal. Almost Famous has been the exclusive licensee of the Madden NYC apparel line since its launch in 2022 and also makes private label goods for mass merchants, department stores and off-pricers. Chairman and CEO Ed Rosenfeld said at the time that Almost Famous was a “strong complement” to Madden’s existing apparel business, thanks to its expertise in junior apparel and strength in value-priced channels.
Wolverine Hands Off Assets to DBI
Amid several quarters of revenue declines, Wolverine Worldwide took aggressive steps this year to off-load underperforming assets. It kicked off the year by selling the Keds brand to Designer Brands Inc. in February for an undisclosed amount. DBI, which is the parent company of DSW, was previously Keds’ largest wholesale customer. As part of the deal, it acquired all Keds products, including the Pro-Keds sneaker line, and the brand’s e-commerce business. Wolverine and DBI also expanded their licensing agreement for Hush Puppies, making DBI the exclusive licensee for Hush Puppies across all channels in the U.S. and Canada, and giving it management of the brand’s DTC e-commerce and possible wholesale business. Wolverine leaders estimated the Keds and Hush Puppies deals could generate more than $90 million for the company.
Richemont Buys Gianvito Rossi
Luxury conglomerate Richemont snapped up a controlling stake in Gianvito Rossi in July. Terms of the deal were not disclosed, but Gianvito Rossi, founder, CEO and creative director of his 17-year-old eponymous label, did retain a stake. Philippe Fortunato, CEO of fashion and accessories maisons at Richemont, said at the time of the announcement that Richemont’s main goal would be to maintain the designer’s commitment to quality and creativity, while helping to fuel its long-term development. Rossi is to be grouped in the company’s “other” category, which includes handbag purveyor Delvaux, Montblanc, Chloé, Alaïa and Dunhill, among others.
Titan Industries Bolsters Brand Roster
Titan Industries founder and CEO Joe Ouaknine secured two important deals in 2023. The first came in June, when it acquired the French footwear brand Clergerie — saving it from liquidation. Titan paid 700,000 euros to buy the Clergerie name, with a commitment of 6 million euros of investment, and at the time of the buyout told FN it was committed to maintaining 45 percent of the workforce. Then in July, Titan announced a partnership with veteran footwear executive Tamara Mellon, giving both parties an equal stake in the Tamara Mellon shoe business. As part of the deal, Titan took over production of the collections and now manages its direct-to-consumer channels. Mellon continues to lead all aspects of creative and design.
Zulily Is Sold and Then Shut Down
In May, Qurate Retail Inc. sold the money-losing Zulily business to Los Angeles-based private equity firm Regent LP for an undisclosed amount. At the time, Qurate CEO David Rawlinson said, “We are confident Regent is the right partner for Zulily to continue serving its customers.” However, any turnaround efforts appear to have come to an end. In early December, the Zulily website formally announced a company shutdown and layoffs that will total about 800 when all offices and warehouses close. The site also began liquidating inventory, with markdowns of 70 to 85 percent off many fashion and home categories.
Arezzo Takes Majority Stake in Paris Texas
Arezzo & Co., the Brazilian conglomerate behind brands such as Arezzo, Schutz and Alexandre Birman, acquired a majority stake in hip Italian footwear label Paris Texas in March. Arezzo & Co. invested 25 million euros to take over 65 percent of the brand that Annamaria Brivio launched in 2015, which generated sales of around 15 million euros last year. This marked the first international acquisition for Arezzo, which is led by CEO Alexandre Birman, who said that having relevance in Italy is crucial for his company’s expansion in the luxury women’s footwear space.
Dick’s Sporting Goods Absorbs Moosejaw
After acquiring the Moosejaw outdoor retail business from Walmart in February for an undisclosed amount, Dick’s Sporting Goods wasted little time with consolidations. In September, it announced that 11 Moosejaw retail stores would close as part of an internal realignment, leaving just three brick-and-mortar locations in Birmingham, Mich.; Salt Lake City, Utah; and Bentonville, Ark. Furthermore, it said it would create one team to support its outdoor banners, which also includes Public Lands. Moosejaw continues to have strong e-commerce operations.
American Exchange Adds Another Shoe Label
A year after American Exchange Group acquired the Aerosoles brand, the New York-based company said in January it had completed the purchase of White Mountain Footwear for an undisclosed amount. American Exchange Group has since been integrating White Mountain’s sourcing and manufacturing capabilities, structure and management with the Aerosoles brand, in order to expand the retail distribution for both brands. And it has signed licensing deals for new categories including kids’ footwear, outerwear and more.
Best of Footwear News
Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
