* Deal to add to EPS in FY12
* Shares rise 12 percent
(Adds comments from conference call, share movement)
June 23 U.S. footwear retailer Genesco Inc
made a bid for the teen and young adult markets in the
UK and Ireland with its $162 million acquisition of Schuh Group
Ltd, sending its shares up 12 percent to a lifetime high.
Schuh, a casual and athletic footwear retailer, brings to
Genesco its 59 stand-alone stores in the United Kingdom and
Republic of Ireland, 16 shop-in-shop stores in teen apparel
retail chain Republic and its online store.
"We believe Schuh has the potential to roughly double its
store base to 100 to 120 freestanding stores in its current
geographic market," Genesco Chief Executive Robert Dennis said
on a call with analysts.
Under the deal, Genesco has paid 100 million pounds ($161.9
million) upfront and will make deferred payments of 15 million
pounds in three years and 10 million pounds in four years.
Genesco does not plan to rebrand Schuh, but expects to bring
Schuh's private label brands to the United States and to
leverage their expertise to develop new brands for its main
Journeys retail stores.
"Private label hasn't been a big focus for Journeys
historically, but given Schuh's success and the combined volume
of the two businesses, we see it as a growth opportunity going
forward," Dennis said.
While 85 percent of Schuh's product mix is branded, private
brands constitute the rest.
Schuh generated sales of about 164 million pounds for its
fiscal year ended March 27.
Nashville-based Genesco said the acquisition will add 25-30
cents to its earnings per share in the current fiscal year and
33-38 cents in fiscal 2013.
Genesco was advised by Jefferies & Company and Schuh by
Noble Grossart Limited.
Shares rose about 12 percent to $50.48, before trading at
$48.79 later in the day on the New York Stock Exchange.
($1 = 0.618 British Pounds)
(Reporting by Arpita Mukherjee in Bangalore; Editing by Prem
Udayabhanu and Don Sebastian)