DSW Merges with Retail Ventures

DSW Inc. (Columbus, Ohio) has entered into a merger agreement with Retail Ventures Inc. (Columbus, Ohio) in an all-stock deal. In the new arrangement, Retail Ventures will become a wholly-owned subsidiary of DSW in a tax-free exchange of shares at an exchange ratio of 0.435 DSW shares per RVI share, the footwear retailer said in a statement.

The merger eliminates the complexity and public company expenses associated with Retail Ventures, whose only operating business is its 62 percent stake in DSW.

DSW reported its fourth-quarter revenue increased 16 percent to $468.5 million, beating analysts' estimates of $445 million.