UNIFIED COMMERCE GROUP ANNOUNCES ACQUISITION OF GREATS FROM STEVE MADDEN AND NEW INVESTMENTS

Rhea-AI Summary

Unified Commerce Group (UCG) has announced the acquisition of GREATS Inc., a premium sneaker brand, from Steven Madden, (Nasdaq: SHOO). This marks UCG's third brand acquisition, joining Frank And Oak and Spiritual Gangster in its portfolio. As part of the deal, Steven Madden, will become a shareholder of UCG through a subsidiary.

UCG has also made a strategic investment in Böhme, a Utah-based womenswear retailer. With these additions, UCG's shared services platform, UCG Hub, now supports four brands with growing direct-to-consumer eCommerce businesses, over 30 retail stores, and more than 200 wholesale partners.

Founded in 2019, UCG aims to scale purpose-driven lifestyle brands through shared services, data-driven customer insights, and operational excellence.

Positive

• Acquisition of GREATS Inc. expands UCG's brand portfolio
• Strategic investment in Böhme adds to UCG's market presence
• Steven Madden, becomes a shareholder in UCG
• UCG now supports 4 brands with growing eCommerce businesses
• Combined footprint of 30+ retail stores and 200+ wholesale partners

Negative

• None.

Insights

Financial Analyst

UCG's acquisition of GREATS and investment in Böhme marks a significant expansion of their portfolio. This move diversifies UCG's offerings and potentially strengthens their market position. The deal structure, with Steven Madden becoming a UCG shareholder, suggests a strategic alignment that could benefit both parties.

For Steven Madden (SHOO), this divestiture might streamline their operations while maintaining exposure to GREATS' potential growth through equity. However, the financial terms are not disclosed, making it challenging to assess the immediate impact on SHOO's balance sheet or UCG's leverage.

UCG's growing portfolio, now supporting four brands with a combined footprint of 30+ retail stores and 200+ wholesale partners, indicates a robust expansion strategy. This could lead to economies of scale and improved operational efficiency through their UCG Hub platform.

Market Research Analyst

This acquisition reflects the ongoing trend of consolidation in the DTC (Direct-to-Consumer) space. GREATS, as a pioneer in DTC footwear, brings valuable expertise to UCG's portfolio. The synergy between GREATS and UCG's existing apparel brands could create cross-selling opportunities and enhance customer lifetime value.

The investment in Böhme further diversifies UCG's portfolio, potentially providing access to a different customer demographic. This multi-brand strategy allows UCG to mitigate risks associated with individual brand performance and capitalize on various market segments.

The expansion of UCG's shared services platform suggests a focus on operational efficiency and scalability. This model could provide a competitive advantage in the challenging retail landscape, potentially leading to improved margins and faster growth for the portfolio brands.

NEW YORK, Aug. 19, 2024 /PRNewswire/ -- Today, Unified Commerce Group (UCG) announces the expansion of its portfolio with the acquisition of substantially all assets of GREATS Inc., a digitally-native footwear brand specializing in premium sneakers for men and women, as well as a strategic investment in Utah-based womenswear retailer Böhme.

Unified Commerce Group was founded in 2019 as a platform to enable purpose-driven lifestyle brands to scale through shared services, anchored by data-driven customer insights and operational excellence. GREATS becomes the third brand in UCG's portfolio, in addition to Canadian fashion brand Frank And Oak, and LA-based athleisure brand Spiritual Gangster.

GREATS Inc. was previously owned by Steven Madden, Ltd. (Nasdaq: SHOO), the globally renowned leading designer and marketer of fashion-forward footwear, accessories and apparel. Unified Commerce Group will assume operational responsibility and, as part of the deal, Steven Madden, Ltd., through one of its subsidiaries, will become a shareholder of UCG.

"GREATS pioneered the direct-to-consumer model in footwear, and continues to delight its customers with high-quality, beautiful fashion sneakers" says Dustin Jones, CEO and Founder of Unified Commerce Group, "We have admired the brand for a long time, and the clear synergies with our existing apparel brands, along with its valuable customer base presents an excellent opportunity to leverage our operational expertise to drive further scale."

Edward Rosenfeld, Chairman and CEO of Steven Madden, Ltd., said "We have known Dustin and his team for a number of years, and are very confident that GREATS will find a strong strategic fit with the fast-growing portfolio of brands at UCG."

With the recent acquisition of GREATS and investment in Böhme, the UCG shared services platform- UCG Hub- is now providing operational support, leadership and strategy to four brands, which each have growing direct-to-consumer eCommerce businesses, and a combined footprint of 30+ retail stores and 200+ wholesale partners.

About GREATS
Founded in 2014, GREATS is the first sneaker brand born in Brooklyn. A pioneer in direct-to-consumer footwear, GREATS is well known for its timeless yet aspirational and versatile styles. A favorite of Hollywood A-listers, the brand has become synonymous with high quality footwear at an exceptional price/value proposition for today's consumer. For more information, visit www.greats.com.

About Unified Commerce Group
Unified Commerce Group (UCG) is a platform for the next generation of retail brands. UCG was founded by Dustin Jones with a mission to unlock growth opportunities for high-potential retail brands through expansion into new markets and customer-centric omni-channel capabilities. As owner and operator of Frank And Oak and Spiritual Gangster, UCG has implemented operational overhauls to scale the brands in a new multi-channel retail environment. Powered by a proprietary tech and data management engine, UCG offers new and established brands a platform to achieve scale by implementing best-in-class store and digital operations, accessing new global markets, and tapping into a world-class partner network. For more information, please visit UnifiedCommerceGroup.com.

About Böhme
Böhme was founded by Vivien and Fernanda Böhme, two sisters from Rio de Janeiro, Brazil who moved to Utah as young girls. Since opening Böhme in 2006, the brand has become one of the most beloved womenswear retailers in the Mountain West, and has expanded to 14 stores in Utah, Idaho, Montana and Arizona, as well as a successful online presence.

Media Contact: Elisabeth de Gramont
elisabeth@unifiedcommercegroup.com

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SOURCE Unified Commerce Group

FAQ

What brands did Unified Commerce Group (UCG) acquire in 2024?

In 2024, Unified Commerce Group (UCG) acquired GREATS Inc., a premium sneaker brand, from Steven Madden, (Nasdaq: SHOO). UCG also made a strategic investment in Böhme, a Utah-based womenswear retailer.

How many brands are now in Unified Commerce Group's portfolio after the GREATS acquisition?

After acquiring GREATS Inc., Unified Commerce Group (UCG) now has three brands in its portfolio: GREATS, Frank And Oak, and Spiritual Gangster.

What is the combined retail and wholesale presence of UCG's brands?

UCG's brands have a combined footprint of over 30 retail stores and more than 200 wholesale partners.

How does the GREATS acquisition affect Steven Madden, (Nasdaq: SHOO)?

As part of the GREATS acquisition deal, Steven Madden, (Nasdaq: SHOO) will become a shareholder of Unified Commerce Group (UCG) through one of its subsidiaries.