Brown Shoe acquires athletic footwear maker ASG for $ 145

Tuesday, 8 March 2011 00:01 - - {{hitsCtrl.values.hits}}

Shoemaker Brown Shoe Co Inc said it acquired American Sporting Goods Corp (ASG) for $145 million in a cash and debt deal to boost its athletic footwear offerings.

The shoemaker expects the deal to add 10-12 cents per share to its 2011 earnings, excluding transaction costs.

ASG had net sales of $232 million for its most recently completed fiscal year, Brown Shoe said.

ASG's key brands include Avia athletic shoes for men, women and children, ryka women's fitness footwear and AND1 basketball shoes.

Brown Shoe also said it increased its revolving credit agreement by $150 million to $530 million, which it will use to entirely finance the deal. It still has access to an additional $150 million accordion under the facility.