Steve Madden to acquire Kurt Geiger for £289 million

LONDON: Steve Madden, the prominent figure in the fashion industry, known for his past association with the securities fraud and money laundering activities detailed in ‘The Wolf of Wall Street’ is set to acquire the British footwear and accessories company Kurt Geiger for £289 million in cash.

Madden’s company, publicly traded on the Nasdaq, has announced that it has reached a definitive agreement to purchase Kurt Geiger, which also owns the Carvela brand. The seller is a consortium led by Cinven, the private equity firm that initially acquired Kurt Geiger for £245 million in 2015. The transaction is expected to be finalized by the end of 2025.

Steve Madden expressed his enthusiasm for the acquisition, calling it “one of the great accomplishments” of his career. He said “The brand is doing better and better every year, and the opportunity to collaborate with them is thrilling. I get goose bumps just thinking about it.”

Madden established his footwear brand in 1990. He previously served 31 months in prison due to his involvement in securities fraud and money laundering related to his dealings with Stratton Oakmont, the firm that handled his company’s initial public offering. The firm’s illegal activities, led by Jordan Belfort and Madden’s childhood friend Danny Porush, were dramatized in Martin Scorsese’s film “The Wolf of Wall Street,” which was based on Belfort’s memoirs.

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Since his release from prison, Madden has successfully developed his company into a well-known fashion brand. His company has also acquired other brands such as Dolce Vita, Betsey Johnson, and ATM Collection.

Kurt Geiger, which began as a high-end footwear store on Bond Street in London in 1963 and was formerly part of Mohamed Al Fayed’s retail group, has expanded its product line to include handbags, swimwear, hats, and sunglasses in recent years. The company has also expanded internationally, with U.S. sales increasing from £10 million to £140 million in the past four years. It currently operates over 70 stores, primarily in the UK and the US, and sells its products online and through department stores.

In the previous year, Kurt Geiger reported a 34% increase in underlying profits to £40.4 million, while sales rose by nearly 10% to £361 million.

Neil Clifford, the Chief Executive of Kurt Geiger, commented on the acquisition, stating, “We couldn’t be prouder of the progress our team has made over the last few years in building Kurt Geiger London into a globally recognisable fashion brand.”

He added, “While we’ve delivered remarkable growth in recent years, we believe we are in the early stages of our growth journey, with significant expansion opportunities available to us. With its global infrastructure and proven track record of supporting and growing its brands, we believe Steve Madden is the right strategic partner to help us reach our potential.”