The rapid industry consolidation continues…
Evansville, IN-based national family chain Shoe Carnival has acquired substantially all of the assets of privately-held, family-owned Shoe Station, which operates 21 stores in five Southeastern states (Alabama, Florida, Georgia, Mississippi and Louisiana). The Shoe Station assets were acquired for $67 million, subject to customary adjustments, funded through cash on hand.
“We are excited to welcome Shoe Station to the Shoe Carnival team,” states Mark Worden, president and CEO. “Coming on the heels of our best quarter of our best year in our 43-year history, this deal accelerates our journey toward becoming a multi-billion dollar retailer in the years ahead.”
With this acquisition, the first in its history, Shoe Carnival will own and operate Shoe Station’s locations across the Southeast. The addition of a new brand and new retail locations to the portfolio creates a complementary retail platform to serve a broader customer base across both urban and suburban demographics. Shoe Station, founded in 1984 in Mobile, AL, has a strong track record of capitalizing on emerging footwear fashion trends and introducing new brands to its customers.
Shoe Station’s current President and CEO, G. Brent Barkin, will become Shoe Carnival’s Senior Vice President, New Business Development & Integration, reporting to Worden. Barkin, the son of Shoe Station’s founder Terry S. Barkin, has been with the company for more than 20 years. G. Brent Barkin will continue to lead Shoe Station while focusing on new business growth opportunities for the combined company.
“Shoe Carnival brings infrastructure and financial backing to significantly accelerate our Shoe Station brand growth,” says Barkin. “Taken together, the two brands create a winning customer value proposition. We are delighted to become part of Shoe Carnival, and I cannot wait to partner with Mark and his talented team to unlock more exciting opportunities to come.”
The transaction is expected to be immediately accretive to diluted net income per share in fiscal 2022, contributing approximately $100 million in incremental net sales, with operating income exceeding 10 percent on a normalized basis. After the close of this acquisition, Shoe Carnival will have more than $100 million in cash on hand, consistent with cash reserves from the same period in fiscal 2020. With the addition of Shoe Station to the portfolio, the company expects to surpass 400 stores by the end of 2022, on a path to double-digit new store growth in the years ahead. (Currently, the chain operates 377 stores in 35 states and Puerto Rico.)
“Brent and his team share our values and vision for the future of family footwear retail,” Worden says. “Together, we are ready to create a multi-billion dollar company, defined and driven by traits that made us industry leaders today. We look forward to building on our joint success as we continue our growth trajectory and driving significant long-term value for all of our stakeholders.”
Mark Worden, president and CEO, Shoe Carnival