Genesco has closed the acquisition of the U.S. assets of New York-based Togast, which specializes in the design, sourcing, and sale of licensed footwear. The purchase price for the acquisition was $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.
Prior to the acquisition, Togast served as distributor for Levi’s footwear in the United States. Upon closing of this transaction, Genesco 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 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. In addition, the Togast purchase expands Genesco’s portfolio to include footwear licenses for G.H. Bass & Co., ADIO and FUBU, among others.
“The acquisition of Togast adds scale to our successful licensed brands platform,” said Robert J. Dennis, chairman, president, and chief executive officer of Genesco. “The combination of our licensed business with Togast’s strengths furthers our footwear focused strategy by creating an even more robust platform within Genesco that can serve multiple tiers of distribution. We are also excited to add the Levi’s footwear license to our portfolio and expand upon our long-standing business relationship with Levi Strauss & Co., which dates back to 1991.”
“We are pleased to broaden our portfolio of licensed footwear brands,” commented Andy Gilbert, licensed brand president at Genesco. “We immediately recognized the sourcing capabilities and corresponding synergies with Licensed Brands that we would achieve through the acquisition of Togast, and I am personally excited to welcome Tony LoConte and his team to the Genesco family.”
Tony LoConte, owner of Togast, added, “In Genesco, we have found a partner whose capabilities are an outstanding match for our business operations. I am looking forward to working with the Genesco team to integrate our businesses and together continue the growth of Genesco’s branded partnerships in the future.”
Genesco is a Nashville-based specialty retailer that sells footwear and accessories in more than 1,490 retail stores throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy, Johnston & Murphy. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, and other brands.