Recently Genesco Inc spent ￡125 million acquiring UK-based Schuh Group Ltd which is a specialty retailer of casual and athletic footwear. And this price is make up three parts puls a possible management bonus contingent upon performance worth up to another ￡25 million.

After the deal, these two companies will derive merchandising synergies as both operate in the same vertical. And their target customers are teenagers and young adults.

All they will benefit from this cross-Atlantic merger that will help them widen the merged entity’s footprint adding many more customers to its present base. Moreover, with continued globalization in footwear, especially among teenagers, trend migration to both continents will be beneficial for Genesco and Schuh.

Schuh’s already established retail presence in the United Kingdom will help Genesco to grow in that market. According to Genesco management, Schuh’s business is compelling, with attractive store economics and strong growth prospects, which made it a lucrative acquisition target. Schuh’s breadth of branded assortment is almost twice the offerings of its closest competitor. On the other hand, through this transaction Schuh will also have access to Genesco’s capital to accelerate its store growth and achieve its targeted 100–120 openings.

Genesco expects the transaction to increase its current fiscal year’s earnings per share excluding any merger and integration costs and compensation liabilities toward Schuh management.

Genesco, a specialty retailer, has more than 2,285 retail stores throughout the U.S. and Canada principally under the names Journeys, Journeys Kidz, Shi by Journeys, Lids and Lids Locker Room, Johnston & Murphy, and Underground Station. Its major competitors include Finish Line Inc. and Cato Corp. what’s more it retains a Zacks #1 Rank, which translates into a short-term Strong-Buy rating.