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Perry Ellis to acquire assets of Rafaella Apparel Group
08 Jan '11
2 min read
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.
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
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