DSW Buys 44% Stake in Canada's Town Shoes

DSW is entering the Canadian market by buying a stake in Canadian footwear retailer Town Shoes. The discount footwear giant will acquire about a 44 percent interest in Town Shoes, a major Canadian footwear retailer, for $68 million Canadian dollars (about US $62 million) in cash. DSW is purchasing its initial stake from Alberta Investment Management Corp., which predominantly owns Town Shoes along with Canadian private equity firm Callisto Capital. DSW's initial stake provides 50 percent voting control and board representation, the company said. The transaction is expected to slightly add to DSW's earnings in 2014, excluding one-time transaction expenses.