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Hampshire announces acquisition of Rio Garment
15 Jun '11
4 min read
Hampshire intends to finance the cash portion of the transaction through cash on hand. The Company expects the transaction to close, subject to satisfaction of certain closing conditions, in the third quarter of 2011. Upon closing of the transaction, Hampshire would also execute a stockholder rights agreement and a voting agreement with the sellers.
The stockholder rights agreement would give the sellers the right to designate two members to the Hampshire Board of Directors, and it is anticipated that Paul Buxbaum and Benjamin Yogel, Managing Director of MRC Capital Group and an investor in Rio, would then join the Board. The stockholder rights agreement would also contain certain lock-up and standstill provisions that would impose limitations on the sellers' ability to purchase or sell Hampshire stock. The voting agreement would provide, among other things that the sellers would vote for Hampshire nominees to the Board.
Marketing Management Group, Inc. (MMG) served as financial advisor and Willkie Farr & Gallagher LLP served as legal advisor to Hampshire in connection with the transaction.
Rio Garment S. del R.L. is a full service apparel manufacturer located in San Pedro Sula, Honduras that provides full package FOB/LDP options to customers in the United States. The Company develops and produces knits tops for both retailers and distributors, providing graphic design as well as product development and sourcing services to its customers.
The stockholder rights agreement would give the sellers the right to designate two members to the Hampshire Board of Directors, and it is anticipated that Paul Buxbaum and Benjamin Yogel, Managing Director of MRC Capital Group and an investor in Rio, would then join the Board. The stockholder rights agreement would also contain certain lock-up and standstill provisions that would impose limitations on the sellers' ability to purchase or sell Hampshire stock. The voting agreement would provide, among other things that the sellers would vote for Hampshire nominees to the Board.
Marketing Management Group, Inc. (MMG) served as financial advisor and Willkie Farr & Gallagher LLP served as legal advisor to Hampshire in connection with the transaction.
Rio Garment S. del R.L. is a full service apparel manufacturer located in San Pedro Sula, Honduras that provides full package FOB/LDP options to customers in the United States. The Company develops and produces knits tops for both retailers and distributors, providing graphic design as well as product development and sourcing services to its customers.
Hampshire Group Limited
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