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The Jones Group in talks to sell jeanswear business to Delta Galil
11 Oct '11
2 min read
The Jones Group Inc. confirmed that it is in discussions with Delta Galil Industries Ltd, the global manufacturer and marketer of branded and private label apparel products for men, women and children, regarding the potential sale of Jones' Jeanswear division for an estimated aggregate amount between $350 and $400 million, which would be subject to change depending upon the level of net working capital and additional adjustments.
Earlier, in compliance with Israeli law and in response to Israeli media speculation regarding a potential transaction, Delta Galil issued a press release confirming discussions with Jones.
The Company expects that discussions with Delta Galil will be concluded or terminated within a month. The Jones Group notes that no agreement has been reached and there can be no assurances that any transaction will result from these discussions.
If a transaction were to be consummated, Jones currently contemplates using a substantial portion of the net proceeds from the transaction to conduct share repurchases. No definitive decisions have been reached regarding the use of proceeds from a potential transaction, including the terms or timing of any such actions.
Jones does not intend to make any additional comments regarding this matter unless and until a formal agreement has been reached or discussions have been terminated.
The Jones Group Inc. is a leading global designer, marketer and wholesaler of over 35 brands with best-in-class product expertise across five divisions: apparel, footwear, jeanswear, jewelry and handbags.
The Jones Group has a reputation for innovation, excellence in product quality and value, operational execution and talent. The Company also markets directly to consumers through branded specialty retail and outlet stores and through its e-commerce sites.
Delta Galil Industries is a global manufacturer and marketer of private label apparel products for men, women and children.
Earlier, in compliance with Israeli law and in response to Israeli media speculation regarding a potential transaction, Delta Galil issued a press release confirming discussions with Jones.
The Company expects that discussions with Delta Galil will be concluded or terminated within a month. The Jones Group notes that no agreement has been reached and there can be no assurances that any transaction will result from these discussions.
If a transaction were to be consummated, Jones currently contemplates using a substantial portion of the net proceeds from the transaction to conduct share repurchases. No definitive decisions have been reached regarding the use of proceeds from a potential transaction, including the terms or timing of any such actions.
Jones does not intend to make any additional comments regarding this matter unless and until a formal agreement has been reached or discussions have been terminated.
The Jones Group Inc. is a leading global designer, marketer and wholesaler of over 35 brands with best-in-class product expertise across five divisions: apparel, footwear, jeanswear, jewelry and handbags.
The Jones Group has a reputation for innovation, excellence in product quality and value, operational execution and talent. The Company also markets directly to consumers through branded specialty retail and outlet stores and through its e-commerce sites.
Delta Galil Industries is a global manufacturer and marketer of private label apparel products for men, women and children.
The Jones Group Inc
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