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Innovo announces deal to buy Joe's Jeans brand
08 Feb '07
2 min read
Innovo Group Inc announced that it has entered into a merger agreement with JD Holdings Inc to acquire all rights, title and interest in and to the Joe's and Joe's Jeans brand and related marks.
JD Holdings Inc is owned by Joe Dahan, president of the Company's Joe's Jeans Inc subsidiary, and creative director of the brand. In exchange for these rights and subject to approval by its stockholders, the Company expects to issue to JD Holdings 14 million shares of its common stock, pay $300,000 in cash at closing and enter into a long-term employment agreement with Joe Dahan to remain as creative director.
In the event that the merger is approved, the existing license agreement will terminate and the Company will own all rights, title and interest in the brand and marks.
The Company also announced today that it has signed a license agreement with The Betesh Group, to become effective upon approval of the merger, to produce handbags and small leather goods, including belts and wallets, for men and women under the Joe's brand.
Marc Crossman, President and Chief Executive Officer of the Company, commented, "This transaction represents a major milestone in our Company's history. This acquisition will cap our strategic overhaul by transforming us from a lower margin private label manufacturer and brand licensee into a lifestyle brand owner and manager with denim expertise focused on developing premium denim products under the Joe's and Joe's Jeans brands."
Crossman added, "In connection with this acquisition, we will be seeking alternative streams of revenue to complement our organic growth, including licensing opportunities both domestically and internationally.”
“As part of this strategy, the license agreement we announced today is the first in what we believe will be a number of strategic steps toward achieving this objective. We look forward to seeking additional similar opportunities as we move through 2007."
JD Holdings Inc is owned by Joe Dahan, president of the Company's Joe's Jeans Inc subsidiary, and creative director of the brand. In exchange for these rights and subject to approval by its stockholders, the Company expects to issue to JD Holdings 14 million shares of its common stock, pay $300,000 in cash at closing and enter into a long-term employment agreement with Joe Dahan to remain as creative director.
In the event that the merger is approved, the existing license agreement will terminate and the Company will own all rights, title and interest in the brand and marks.
The Company also announced today that it has signed a license agreement with The Betesh Group, to become effective upon approval of the merger, to produce handbags and small leather goods, including belts and wallets, for men and women under the Joe's brand.
Marc Crossman, President and Chief Executive Officer of the Company, commented, "This transaction represents a major milestone in our Company's history. This acquisition will cap our strategic overhaul by transforming us from a lower margin private label manufacturer and brand licensee into a lifestyle brand owner and manager with denim expertise focused on developing premium denim products under the Joe's and Joe's Jeans brands."
Crossman added, "In connection with this acquisition, we will be seeking alternative streams of revenue to complement our organic growth, including licensing opportunities both domestically and internationally.”
“As part of this strategy, the license agreement we announced today is the first in what we believe will be a number of strategic steps toward achieving this objective. We look forward to seeking additional similar opportunities as we move through 2007."
Innovo Group Inc, USA
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