Shoe Carnival has acquired the 53-year-old footwear company Rogan Shoes for $45 million, subject to additional revisions.
The acquisition is expected to boost the company’s earnings this year, adding about $84 million in sales and $10 million in operating income, excluding transaction and integration costs.
The company has an 18-month integration strategy in place and aims to capture an additional $1.5 million in synergies per year, with half of the profit synergies realised by fiscal 2025 and the remainder by fiscal 2026. Integrating Rogan’s into the Shoe Station banner and merging the company’s existing systems and capabilities is expected to result in strategic and cost benefits.
“Our growth strategy is focused on becoming the nation’s leading family footwear retailer through a combination of organic growth initiatives and M&A activity that expands our geographic footprint and customer base,” said Mark Worden, president & CEO of Shoe Carnival.
“Over the past five decades, the Rogan family has built a brand that is well-known and trusted throughout the state of Wisconsin. As such, they have established a clear market leadership position in Wisconsin for work and family footwear, with a compelling assortment, great customer service, and a highly committed team of employees.”
After incorporating the acquisition into the company’s Shoe Station growth banner, total banner revenues are estimated to exceed $200 million by fiscal 2025. With the acquisition, the company’s store count reaches 429, putting it on track to meet its aim of operating over 500 locations by 2028.
Rogan Shoes has 28 store locations in Wisconsin, Minnesota, and Illinois.