US footwear retailer Shoe Carnival has acquired Rogan's Shoes, a family and work footwear company, for $45m, funded entirely with cash on hand.  

Rogan’s operates 28 stores in the midwestern states of Wisconsin, Minnesota and Illinois. 

The acquisition marks a significant step in Shoe Carnival's expansion strategy, strengthening its presence in the Wisconsin market and paving the way for further growth in Minnesota.  

The strategic move will enhance Shoe Carnival's fiscal 2024 earnings, with an expected increase in sales of $84m and an operating income of $10m, excluding transaction and integration costs. 

An 18-month integration plan aims to realise $1.5m in annual synergies, with half expected by fiscal 2025 and the full amount by fiscal 2026.  

The integration will involve consolidating Rogan's under the Shoe Station banner and optimising existing systems and capabilities. 

The company expected sales from the combined entity to exceed $200m by fiscal 2025. 

Shoe Carnival's store count reached 429 following the acquisition and the company should exceed 500 stores by 2028. 

Shoe Carnival president and CEO Mark Worden stated: "Our growth strategy is focused on becoming the nation’s leading family footwear retailer through a combination of organic growth initiatives and mergers and acquisitions activity that expands our geographic footprint and customer base. 

"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 [...] for work and family footwear, with a compelling assortment, great customer service and a highly committed team of employees." 

Shoe Carnival predicted that its net sales will reach $1.17bn in the fiscal year ended 3 February 2024, driven by strong sales growth during the December holiday period.  

The retailer's diluted earnings per share are in line with expectations of between $2.65 and $2.75.