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Perry Ellis to combine C&C & Laundry Opts with Penguin
09 Jan '08
3 min read
Perry Ellis International announced that it has entered into a definitive agreement for the acquisition of the C&C California and Laundry brands from Liz Claiborne Inc. for $37 million subject to inventory adjustment.
The acquisition will be financed through existing cash and borrowings under the Company's existing credit facility. The Company expects to close the acquisition, subject to receipt of customary government approvals and other customary conditions, by February 4th.
"These acquisitions, which advance Perry Ellis International's growth strategy with two strong brands, with a very young following," said George Feldenkreis, chairman and chief executive officer.
"The addition of C&C California and Laundry will allow us to aggressively pursue women's apparel in the contemporary segment, which is the fastest growing one of the women's market today. With this acquisition, we increase our long term growth potential and mark another key milestone in our Company's history."
Contemporary Brands to Add Over $60 Million in Annual Revenues.
Subject to completion of the transaction, Perry Ellis International will combine its C&C California and Laundry operations with the Original Penguin brand to create a new Contemporary Business Platform. The combined additional annual revenues for Fiscal 2009 of these two brands are expected to be approximately $60 million.
Reflecting the high growth potential for Original Penguin, C&CCalifornia and Laundry, the contemporary brand revenues should increase at a double digit annual rate over the next five years. The acquisition will have no impact on Fiscal 2008, and accretion in the range of $0.08 to $0.10 is expected in Fiscal 2009.
The acquisition will be financed through existing cash and borrowings under the Company's existing credit facility. The Company expects to close the acquisition, subject to receipt of customary government approvals and other customary conditions, by February 4th.
"These acquisitions, which advance Perry Ellis International's growth strategy with two strong brands, with a very young following," said George Feldenkreis, chairman and chief executive officer.
"The addition of C&C California and Laundry will allow us to aggressively pursue women's apparel in the contemporary segment, which is the fastest growing one of the women's market today. With this acquisition, we increase our long term growth potential and mark another key milestone in our Company's history."
Contemporary Brands to Add Over $60 Million in Annual Revenues.
Subject to completion of the transaction, Perry Ellis International will combine its C&C California and Laundry operations with the Original Penguin brand to create a new Contemporary Business Platform. The combined additional annual revenues for Fiscal 2009 of these two brands are expected to be approximately $60 million.
Reflecting the high growth potential for Original Penguin, C&CCalifornia and Laundry, the contemporary brand revenues should increase at a double digit annual rate over the next five years. The acquisition will have no impact on Fiscal 2008, and accretion in the range of $0.08 to $0.10 is expected in Fiscal 2009.
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