R.G. Barry, www.rgbarry.com – the powerhouse developer/marketer of a wide variety of accessories footwear from slippers to active fashion, reported completion today of the Company’s purchase of Long Beach, California-based premium insole and footwear comfort solutions company, Foot Petals, LLC., which will henceforth be operated as a subsidiary.
Foot Petals has been developing premium foot care and comfort solutions since its inception a decade ago and has an exceptional array of over 20 unique products, accessories and kits to address common comfort and other problems.
Foot Petals is widely known as an innovator and leader in premium insoles, especially for fashionable shoes and has developed into a very strong organically driven market cemented into place by widespread distribution via top-tier retailers like Nordstrom and Dillard’s among others.
President and CEO of DFZ, Greg Tunney, underscored the synergistic parallels between the product offerings, customer bases and core values of each company, calling the acquisition a key element of DFZ’s long-term growth strategy.
Tunney also emphasized the popularity of the brand in general and nature of the market in specific, citing dynamic swathes the brand has cut through targeted consumer groups and the stellar management team behind it all.
President and founder of Foot Petals, Tina Aldatz, has rapidly built up a successful category-leading business model with excellent traction and returns in just a decade, and this purchase by DFZ is the culmination of that effort.
Aldatz, a young and aggressive pioneer who saw the gap in the market for comfort insoles designed for stylish high heel shoes, called the purchase a pivotal moment in the brand’s evolution and welcome to opportunity to use DFZ’s capacity to grow the brand substantially.
As an incredibly important new part of the R.G. Barry organization, Foot Petals will continue to focus on growing the brand through innovation and the offering of more comprehensive comfort solutions, something both companies share and were founded on.
Senior VP Finance and CFO at DFZ, Jose Ibarra, explained that the $14M cash purchase fell well within the projected acquisition filter and that Foot Petal’s positive cash flow would be “immediately accretive to earnings”.
Ibarra furthered his analysis, saying that the Foot Petals brand indicated significant growth potential and that he anticipates the brand growing into an important component of DFZ’s total business.
An upcoming discussion of the Foot Petals purchase is scheduled to take place next month, Feb. 8, at the quarterly earnings teleconference/webcast (9 a.m. EST).