“We are very pleased to have completed the acquisition of Hudson and we look forward to capitalizing on the numerous opportunities created by this partnership,” stated Marc Crossman, President and CEO of Joe’s Jeans. “The combination of our two organizations, which doubles the size of our business, significantly enhances our prospects for growth across wholesale, retail and e-commerce, both domestically and overseas. The combination also provides operating and supply chain benefits that should drive meaningful cost savings in the future and underscores our positive outlook.”
Hudson’s CEO, Peter Kim, added, “We are excited about this merger. We could not have thought of a better partner to join with to help us achieve a shared strategic vision of being the leader in the premium denim market and impacting it in a significant way.” Mr. Kim continued, “We are committed for the long haul and are eager to cross share our expertise. We expect the combined company to be at the forefront of the industry.”
Many opportunities lie ahead as a result of this merger. While it is of paramount importance to preserve the distinct and separate DNA of each brand, the combined company hopes to realize significant savings across all components of making a jean. The magnitude of the combined company is expected to provide both brands with improved purchasing authority with current and future vendors. Both brands are eager to seize these opportunities as they will jointly benefit not only from operational efficiencies, but also by sharing expertise in growth areas, such as men’s and kid’s apparel, e-commerce, international and retail.
The total purchase price for Hudson was $97.6 million. Transaction financing consisted of a $50 million revolving credit facility with CIT Trade Finance as agent and a $60 million senior term loan provided by affiliates of Garrison Investment Group as agent. CIT Capital Markets acted as lead arranger for the transaction financing. CIT Trade Finance will also provide factoring services to the combined companies.
Threadstone Advisors LLC served as financial advisor to Joe’s Jeans on the transaction and Akin, Gump Strauss Hauer & Feld LLP served as legal advisor. Lazard Middle Market LLC served as financial advisor to Hudson on the transaction and McDermott Will & Emery LLP served as legal advisor. Triangle Capital LLC provided a Fairness Opinion to the Board of Directors of Joe’s Jeans.
Joe's Jeans is a casual, chic lifestyle brand offering a unique interpretation on classic, modernized wardrobe staples encompassing a versatile range of timeless styles from premium denim and luxe collection pieces to contemporary accessories and footwear.
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