Genesco has announced a deal for the purchase of the assets of Togast, a company in New York that specializes in the design, sourcing and sale of licensed footwear for companies such as Levi's in the U.S.
Following the takeover, Genesco will enter a new deal with Levi's footwear for men, women and children to be sold in the U.S. while renewing its long-standing contract with Levi & Strauss for Dockers men's shoes, which began in 1991.
The purchase of Togast will also add licensed footwear for G.H. Bass, Adio and Fubu to Genesco's portfolio of licensed brands. Togast's former owner, Tony LoConte, indicated that he will be working with Genesco to integrate the business. Genesco will also benefit from Togast's sourcing capabilities.
Indicating that the acquisition should be completed by next month, Genesco said it will pay $33.7 million in cash for the assets at closing, plus an earn-out of $34 million in cash depending on the achievement of certain financial goals in the next four years. Genesco said that the acquisition will be accretive to its results.