Done Deals: Rolling Stone, Penske Media Acquire ‘Life Is Beautiful’ Festival
Catch all the latest news about footwear industry acquisitions, and licensing and distribution agreements here. Got a deal in the works? Tell us at web@footwearnews.com.
Feb. 5, 2022: Rolling Stone, a subsidiary of Penske Media, has snapped up a majority interest in Life is Beautiful, the annual music, arts and ideas festival in Las Vegas. The event was founded in 2013 by the late Zappos luminary Tony Hsieh as part of his strategy to reinvent downtown Las Vegas. In 2021, the festival was anchored by Billie Eilish, Green Day, and Tame Impala and drew over 170,000 people. “Live events are an integral part of Rolling Stone’s future, and Life is Beautiful is an incredible platform to realize this vision. Coupled with our significant digital scale and deep journalism, there are infinite possibilities to grow Life is Beautiful in unique and impactful ways,” said Rolling Stone CEO Gus Wenner. Since its founding, the festival has brought in over $350 million to the city. “Tony understood that his ability to change people’s lives was magnified exponentially by his ability to bring smart, motivated, people-focused entrepreneurs together,” said Richard Hsieh, Tony’s father. “The Life Is Beautiful festival is one of the greatest manifestations of Tony’s desire to bring people together.”
Feb. 4, 2022: Foot Solutions has acquired Florida-based retailer Happy Feet Plus. The acquisition brings together two major retail forces in specialty footwear and the ~3.5 billion global orthotic insoles market. Details of the transaction were not announced. As part of the integration plan, Foot Solutions has promoted Taylor Berry to VP of operations and Bryan Scott to SVP of strategic growth. Among other duties, Scott will be responsible for the newly formed Innovation Group—a team tasked to differentiate the company through technology integration, training, and product R&D. Joining the Innovation Group will be representatives from both companies, including Bryan Dickler, Foot Solutions’ head of medical and training, as well as Happy Feet’s Alan Boiko who has agreed to lead the company’s product innovation efforts.
Feb. 3, 2022: Building on its existing commitment to the women in sport, Nike has made an equity investment in the WNBA. Via the new investment, Nike will partner with the WNBA to focus on storytelling for athletes and further the involvement for women in grassroots opportunities. The investment builds upon Nike’s existing commitments to the league, including a collection of new uniforms last year.
Jan. 31, 2022: LA Fashion Week (LAFW) is under new ownership and will return April 1. Now owned by event company N4XT Experiences, the local fashion week is aiming to elevate its shows and experience as Los Angeles cements itself in the world of fashion, according to a statement on announcing the acquisition. Terms of the deal were not disclosed. N4XT Experiences is a live events platform launched in 2022 by brand guru Ciarra Pardo, former chief creative officer of Fenty; Imad Izemrane, president and co-founder of Spring Place; entertainment industry veteran Marcus Ticotin; financial industry veteran Keith Abell; and Jackie Trebilcock, who has spent close to a decade building The NY Fashion Tech lab. LAFW’s fall/winter 2022 season kicks off in April at the Petersen Automotive Museum and at Spring Place Beverly Hills.
Jan. 13, 2022: Tecovas has secured $56 million in Series C funding, bringing the brand’s total lifetime equity funding to approximately $120 million. The Series C was led by Elephant, which also led Austin-based western footwear, apparel, and accessories brand’s Series A and Series B, and joined by new and existing investors, including Access Capital, Seamless Capital, and Kemmons Wilson Companies. “Our goal at Tecovas is to build the most welcoming brand in western,” said Paul Hedrick, founder and CEO of Tecovas. “This latest funding will allow us to scale our vision and welcome even more customers to the brand. We’ve seen rapid growth since Tecovas’ launch in 2015, and we plan to use the proceeds from this round of funding to continue on that trajectory, investing significantly in hiring, expanding our retail footprint, buying more inventory, and launching many new products.”
Big Deals in Dec. 2021
Dec. 30, 2021: American Eagle Outfitters (AEO) has completed the acquisition of Quiet Logistics and strategic investments for approximately $360 million in cash. Quiet Logistics, which operates a network of in-market fulfillment centers in Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville, will be a wholly-owned AEO subsidiary and will continue to run its business independently. The network will support AEO’s continued growth, while also driving economies of scale as it expands its customer base to other brands and retailers seeking advanced logistics capabilities. The purchase solidifies operational efficiencies for AEO and creates a supply chain platform with significant long-term growth potential. “I am thrilled to officially welcome Quiet Logistics into the AEO Inc. portfolio, cementing a collaborative partnership that has meaningfully contributed to our financial results over the past 18 months,” said Jay Schottenstein, AEO’s executive chairman and CEO, in a statement. “AEO’s unique ability to reduce delivery costs amid rising inflation is a direct reflection of the efficiencies provided by their innovative fulfillment model. Quiet Logistics has a highly experienced supply chain leadership team and I look forward to their partnership as we continue to drive operational excellence and grow the platform into a meaningful business.”
Dec. 14, 2021: Genesco Inc., which owns Journeys, Journeys Kidz, Little Burgundy and Johnston & Murphy has signed a new licensing agreement with running brand Etonic. Under the three year agreement, Genesco will be the brand’s exclusive U.S. and Canadian footwear licensee. The agreement also includes two three-year options for renewal. “Along with our current roster of domestic and international licensees, we continue our work to build the Etonic brand and return it to its rightful place among the best athletic companies in the world,” said Bruce Weisfeld, partner at Etonic Holdings LLC. We are confident that Genesco will honor the Etonic tradition of ‘firsts’ by bringing new product to market through its extensive retail and wholesale platforms.”
Dec. 14, 2021: Prince, a leading tennis and lifestyle brand has inked a partnership with Pajar Canada to design, manufacture, and distribute footwear and outerwear for the brand. Prince is owned by Authentic Brands Group, the brand marketing firm that also owns Forever 21, JCPenney and Reebok. Via the partnership with Pajar Canada, Prince will expand into the footwear category with a new collection of shoes meant to be worn off the court. “Pajar Canada is a highly trusted footwear operator, which brings generations of expertise to this important category for the Prince brand,” said Taryn Washenik, Senior Vice President, Fashion, Classics and Outdoor at ABG. “This new partnership will help to further build out Prince’s lifestyle offerings and presents an opportunity to capture the attention of a new set of fashion tastemakers.”