September 27, 2020
Uncategorized

Aldo and Camuto Merger Aims to Create Footwear Powerhouse

Aldo and Camuto are hoping size equals strength.
On Wednesday, Aldo Group, based in Montreal, reached an agreement to acquire the footwear and accessories business from Camuto Group, based in Greenwich, Conn. Although the purchase price was not disclosed, the Camuto footwear and accessories business is believed to have fetched about $250 million.
“It’s a fair price, [although] it seems low,” one observer said.
A financier said the transaction needed to get done “because there really wasn’t that much more that could be done to grow the business in its current format.” The source was referring to the passing of founder Vince Camuto and how it was his designs and creativity that drove the footwear business. As for price, the source said it was within range, and noted that the Aldo family is fairly disciplined and wouldn’t overpay for the acquisition.
The acquisition is expected to significantly increase both companies’ capabilities and reach and enhance their ability to offer a wide selection of footwear, handbags and accessories through owned stores, franchises, online and wholesale distribution.
The transaction is another indicator of how important scale has become in the industry — and the big are only getting bigger as they struggle with the rise of e-commerce,

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