The company expects to reap an extra operating income of $7 million and earnings per share of $0.20 in the remaining weeks of fiscal 2016 from this acquisition, excluding transaction expenses, integration costs and the impact of non-cash purchase accounting adjustments required under GAAP, according to a press statement released by Oxford.
The funds required for this transaction were obtained from the US credit facility borrowings. Under the purchase agreement, the purchase price is subject to adjustment based on net working capital at closing.
Commenting on the acquisition, Thomas Chubb III, chairman and CEO of Oxford said, “We are excited to add Southern Tide to our portfolio of distinctive lifestyle brands. We believe this business is an excellent fit and expect our operating platform to facilitate continued growth.”
“It is also a brand we know well; Oxford's relationship with Southern Tide goes back to 2009 when we began providing sourcing and production services to them. Since then, we have been a partner and first hand observer of the strength of the brand, the quality of the management team and their clear potential to capture and manage growth,” Chubb said.
Additionally, Christopher Heyn, CEO of Southern Tide said, “We are very pleased to be joining the Oxford team and believe our business will continue to flourish under its guidance. Oxford has a deep appreciation for lifestyle branding and an excellent track record of growth with brands like ours.”
“With this acquisition, we continue to execute our strategy of delivering shareholder value through a diversified platform of great lifestyle brands,” Chubb added. (MCJ)
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