American Exchange Group acquires footwear brand Island Surf Company – Footwear News

Island Surf Company

As the footwear market continues to boom, American Exchange Group has added another brand to its growing portfolio.

The New York-based footwear and accessories company, which bought Aerosoles in 2022 and the White Mountain footwear brand and creative services and digital marketing company last year, announced Wednesday that it has struck another deal, this time to acquire Island Surf Company, a nautical-inspired footwear brand founded in 2008. Under the deal, Island Surf Company will become a division of the White Mountain footwear brand, where it will benefit from its existing infrastructure, sourcing expertise and retail partnerships.

“We see tremendous potential in the acquisition of Island Surf Company,” said Alen Mamrout, CEO of American Exchange Group, in a statement. “The synergy between White Mountain and Island Surf Company will allow us to expand the brand’s reach and transform it into a complete lifestyle brand. There are significant opportunities to expand Island Surf Company into multiple categories through strategic licensing, leveraging our collective resources and expertise to maximize its market impact and appeal.”

Island Surf Company CEO Joe O’Brien, who will remain on board and steer the brand, added in a statement that the acquisition will allow Island Surf Company to reach a broader customer base. The brand, known for its lightweight, waterproof shoes, is currently sold at Amazon, Beall’s Department Stores, Beall’s Outlet, Boscov’s, TJX Group, Shoe Carnival, Shoe Show and other retailers, as well as on the brand’s own website.

“We view this acquisition as a strategic move to expand our market presence and introduce Island Surf Company’s innovative product lines to our established retail network,” Steve Velasquez, American Exchange Group’s chief strategy officer, said in a statement. “This move is part of American Exchange Group’s broader strategy to deepen our commitment to delivering products that meet the evolving needs of our customers.”

The news is the latest sign that activity in the footwear industry is indeed heating up. Just last month, RG Barry Corporation revealed it had been acquired by Marubeni Growth Capital US (MGCU), a subsidiary of Tokyo-based Marubeni Corporation. At the time of the announcement, RG Barry CEO Bob Mullaney said the investment would help the company continue to make new acquisitions, which would likely be in the footwear space.

In the last quarter, several CEOs from leading footwear and retail brands expressed their willingness to strengthen their cooperation in the near future.

Despite high interest rates, geopolitical conflicts, and an economy in turmoil, the broader consumer transaction market is showing strong signs of recovery, with retail leading the way. Fifty-two percent of announced and completed M&A deals in the first half of 2024 came from the retail sector, according to a recent report from PwC, which analyzed data from S&P Capital IQ. And consumer transaction volume increased 7 percent in the first four months of 2024 compared with the same period a year earlier.