Columbus, Ohio -- In a move to establish a base in Canada, DSW Inc. has entered into an agreement to buy an approximate 44% stake in Canadian footwear retailer Town Shoes. The transaction, expected to close in May, is valued at approximately $62 million. Under the agreement, DSW will have the right to purchase the rest of Town Shoes after four years.
With sales of $264.7 million in its last fiscal year, Town Shoes is Canada’s largest footwear retailer, operating 182 stores, primarily under The Shoe Company, Shoe Warehouse and Town Shoes banners. It is owned mainly by Alberta Investment Management Corp. and Callisto Capital, a Canadian private equity firm.
“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,” DSW president and CEO Mike MacDonald said. "Our partnership provides us a unique opportunity to bring DSW into Canada through Town Shoes' platform. We hope to share best practices in sourcing, operations, inventory management, and omni-channel integration to our mutual advantage."