The footwear retailer has acquired Rogan Shoes, a work and family footwear company with 28 locations in Wisconsin, Minnesota and Illinois.
The purchase price was put at $45M, subject to further adjustments, with the transaction funded entirely with cash on hand.
The acquisition positions Shoe Carnival, which operated 429 stores in 36 states and Puerto Rico, as the market leader in Wisconsin. It also establishes a store base in Minnesota, creating additional expansion opportunities.
The deal is expected to generate approximately $84M in sales and approximately $10M in operating income for Shoe Carnival, excluding transaction and integration costs. Shoe Carnival said it has an 18-month integration plan in place and expects to capture an additional $1.5M in synergies annually, with half of the profit synergies realised by fiscal 2025 and the full amount by fiscal 2026. The strategic and cost synergies will be achieved by integrating Rogan’s into the Shoe Station banner and leveraging the company’s existing systems and capabilities.
