As the shoe deal market heats up, American Exchange Group has added another brand to its growing portfolio.
The New York-based footwear and accessories company, which in 2022 bought Aerosoles and last year purchased the White Mountain shoe brand and a creative services and digital marketing company, shared with FN on Wednesday that it has closed on another deal, this time to acquire Island Surf Company, a nautically inspired shoe brand founded in 2008. Under the deal, Island Surf Company will become a division of the White Mountain footwear brand, where it will benefit from existing infrastructure, sourcing expertise and retail partnerships.
“We see tremendous potential with the acquisition of Island Surf Company,” said American Exchange Group chief executive officer Alen Mamrout in a statement. “The synergy between White Mountain and Island Surf Company will allow us to broaden the brand’s reach and transform it into a complete lifestyle brand. There are extensive opportunities to expand Island Surf Company into various categories through strategic licensing, utilizing our shared resources and expertise to maximize its market impact and appeal.”
Island Surf Company chief executive officer Joe O’Brien, who will stay on board at them helm of the brand, added in a statement that the acquisition will allow Island Surf Company to reach a broader consumer base. The brand, known for its lightweight, water-resistant shoes, is currently sold at Amazon, Beall’s Department Stores, Beall’s Outlet, Boscov’s, TJX Group, Shoe Carnival, Shoe Show and more retailers as well as on its own brand website.
“We view this acquisition as a strategic move to expand our market presence and introduce Island Surf Company’s innovative product lines to our established retailer network,” American Exchange Group chief strategy officer Steve Velasquez in a statement. “This step is part of American Exchange Group’s broader strategy to deepen our commitment to delivering products that align with our customers’ evolving needs.”
The news is the latest sign that footwear deal activity has indeed begun to heat up. Just last month, RG Barry Corporation revealed it had been acquired by the Marubeni Growth Capital U.S. (MGCU) a subsidiary of the Tokyo-based Marubeni Corporation. At the time of the announcement, RG Barry chief executive officer Bob Mullaney said that the investment would help the company target new acquisitions moving forward that would likely live in the footwear space.
And throughout the most recent quarter, several executives from top shoe and retail brands indicated a desire to lean into more deal-making in the near future.
Despite high interest rates, geopolitical conflicts and an economy in flux, the consumer deal market more broadly is showing strong signs of a rebound, with retail leading the way. According to a recent report from PwC, which analyzed data from S&P Capital IQ, fifty two percent of announced and completed M&A transactions in the first half of 2024 came from the retail sector. And consumer deal volume was up 7 percent in the first four months of 2024 compared to the same prior the prior year.
