Home / Knowledge / News / Apparel/Garments / Perry Ellis to acquire assets of Rafaella Apparel Group
Perry Ellis to acquire assets of Rafaella Apparel Group
Jan '11
Perry Ellis International Inc announced that it has entered into a definitive agreement to acquire substantially all of the assets of Rafaella Apparel Group, Inc, an entity controlled by affiliates of Cerberus Capital Management, L.P., for an aggregate purchase price of $70 million plus warrants to purchase 106,564 shares of common stock, subject to net working capital adjustments to the final closing balances.

Rafaella is a leading designer, sourcer, marketer and distributor of a full line of women's better sportswear, and recognized throughout the women's apparel industry and by consumers for its superior fitting pants. Distributed across the department store channel, Rafaella recognized revenues of approximately $122 million and adjusted EBITDA of $12.4 million for the trailing twelve month period ended September 30, 2010.

“With the addition of the Rafaella Apparel platform, Perry Ellis will immediately become a more significant player in the women's apparel industry. We are extremely impressed with the management team which brings extensive industry experience in design, sourcing, and customer sales relationships. This acquisition will provide additional diversification within our business model to enable us to deliver more value to our stakeholders,” commented George Feldenkreis, Chairman and Chief Executive Officer.

Perry Ellis will finance the transaction through its senior credit facility and cash on hand. Subject to closing, the acquisition is expected to add approximately $.40 to earnings per share for next fiscal year. The Company expects to close the transaction, subject to satisfaction of customary closing conditions, on or before January 28, 2011.

“We are extremely pleased to welcome the Rafaella team to Perry Ellis. We believe this addition to our core businesses will provide excellent cross-selling opportunities across our portfolio of brands and provides a larger foundation to support our current women's brands Laundry by Shelli Segal and C&C California,” commented Oscar Feldenkreis, President and Chief Operating Officer.

Christa Michalaros, Chief Executive Officer of Rafaella Apparel Group, commented, “We are delighted to become part of the Perry Ellis family of brands. The ability to leverage Perry Ellis' operational expertise, financial strength, and proven success developing full lifestyle brands, will enable us to continue strengthening our position in the women's apparel market. It also will allow us to deliver enhanced opportunities for our business partners, customers, and employees.”

Financo Inc is acting as lead financial advisor to Rafaella Apparel Group, Inc. in connection with the acquisition.

Perry Ellis International Inc

Must ReadView All

Textiles | On 24th Oct 2016

Indian govt plans roadshows to promote textile exports

The Indian government has planned to conduct roadshows to boost the...

Textiles | On 24th Oct 2016

TPP may hit roadblock

The 12-member Trans-Pacific Partnership (TPP) that was signed earlier ...

Textiles | On 24th Oct 2016

Baba Ramdev’s Patanjali to enter textile manufacturing

Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search