Genesco Inc. (NYSE: GCO) announced that it has closed the acquisition of the U.S. assets of New York-based Togast LLC, previously announced on Dec. 18.
Togast is a company that specializes in the design, sourcing and sale of licensed footwear. The acquisition is expected to be accretive to Genesco’s fiscal 2021 earnings.
As planned, at closing, Genesco also entered into a new U.S. footwear license agreement for men, women and children for Levi’s®, as well as renewed and extended its men’s Dockers® footwear license. The Togast purchase expands Genesco’s portfolio to include footwear licenses for G.H. Bass & Co., ADIO and FUBU, among others.
According to a press release issued after the Dec. 18 announcement, the he purchase price for the acquisition is $33.7 million in cash at closing, plus up to an additional $34 million in cash contingent on the achievement of financial targets over the next four years. The purchase price paid at closing is expected to be funded from cash on hand.
Prior to the acquisition, Togast served as distributor for Levi’s footwear in the United States. Commensurate with the closing of this transaction, Genesco will enter into a new U.S. footwear license agreement for men, women and children for Levi’s, as well as renew and extend its men’s Dockers footwear license. The addition of privately owned Togast brings to Genesco new sources of revenue and synergistic product development and offshore sourcing capabilities, which complement and enhance Genesco’s licensed brands division.
Genesco celebrated its 95th anniversary last October, and as part of those festivities hosted an employee appreciation luncheon at its Johnston & Murphy/Genesco distribution center in Fayetteville. The facility is located at 1501 Winchester Highway in Fayetteville.
About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer, sells footwear and accessories in more than 1,490 retail stores throughout the United States, Canada, the United Kingdom, and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy, Johnston & Murphy, as well as on the internet websites under each of those names.
In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, and other brands. For more information on Genesco and its operating divisions, visit www.genesco.com.