Pryor Cashman represented the Camuto Group, a product design and brand development organization in an agreement to sell its operations to North American footwear and accessories retailer DSW Inc. for approximately $375 million.
Camuto Group is best known for the Vince Camuto brand and the footwear licenses of Jessica Simpson and Lucky Brand. As part of the deal, DSW and Authentic Brands Group LLC (ABG), a global brand development, marketing and entertainment company, will form a new partnership to acquire numerous intellectual property rights from Camuto Group.
Under the agreement, DSW will contribute approximately $200 million to acquire all of Camuto Group’s global production, sourcing and design infrastructure, along with existing working capital of approximately $100 million. DSW will also contribute nearly $56 million to acquire a 40% stake in the IP of Camuto Group’s proprietary brands, with ABG taking the majority 60% stake. Camuto Group will continue to manage its dedicated wholesale and third-party design relationships independently of DSW’s retail business.
“With DSW’s resources, we expect that Camuto Group’s market presence and product offerings will significantly expand, further enhancing the company’s value premium,” said John J. Crowe, co-chair of Pryor Cashman’s Corporate Group.
The deal is expected to close by the end of the year. Representing Camuto Group on the transaction are Pryor Cashman partners Michael Goldberg, co-leader of the firm’s Fashion Group, John J. Crowe, co-chair of the Corporate Group, and counsel Robert Lamonica. Partners Michael Dunworth, Michael Weinsier, Ed Rayner, Richard Frazer, counsels Rebecca Schmutter and Matthew Young, and associates Kimber Hargrove and Maraiya Hakeem also worked on the deal.
Wachtell, Lipton, Rosen & Katz represented DSW in the purchase.
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Pryor Cashman represented Miami-based Codigo Entertainment in the sale of Latin music company Fania Records and Publishing to Concord Music, a transaction with an estimated value of $30 million. Read the Leaders In The Law article here.