Brown Shoe Announces Agreement to Sell AND 1 for $55M

Brown Shoe Company, Inc. BWS today announced it entered into an agreement to sell AND 1 to Galaxy International, a newly-formed brand management company, for $55 million in cash. The transaction is expected to close within 45 days and is subject to customary closing conditions and Galaxy obtaining financing. Brown Shoe plans to use the proceeds from the sale of AND 1 to pay down debt. AND1, a global men's performance basketball and lifestyle brand, was part of the American Sporting Goodsacquisition that Brown Shoe completed on February 17, 2011, for $145 million in cash and assumed debt. This acquisition helped broaden Brown Shoe's reach by complementing its fitness and comfort offerings with athletic and outdoor brands, including Avia, ryka and Nevados. For its most recently completed fiscal year, ASG achieved net sales of $232 million, and this amount excludes all licensed product sales.