Total cash consideration of the acquisition was $19.7 million reflecting the payoff of $19.2 million of outstanding debt obligations under the credit facility of the acquired businesses and $0.5 million of compensation expense. On the closing date, the assets of the acquired businesses included $0.7 million of cash. Vince funded the purchase with cash utilising its existing revolving credit facility, which was increased by $20 million to $100 million simultaneously with the acquisition.
Combined net sales for Rebecca Taylor and Parker totalled approximately $84 million for the twelve-months ended February 2, 2019.
“We are excited to be creating a diversified portfolio of highly recognised and distinct contemporary brands with this acquisition. The addition of Rebecca Taylor and Parker will position us to gain broad appeal across the contemporary spectrum,” said Vince CEO Brendan Hoffman said in a statement.
“We see opportunity to accelerate growth in each of these brands by implementing the Vince strategic playbook to build direct-to-consumer strategies, further expand brand awareness, and leverage core competencies through the sharing of best practices. The expansion of our revolving credit facility also provides us with additional financial flexibility to support our growth initiatives. We believe we have the opportunity to double revenue for the company over time with the combination of this acquisition and the continued execution of growth initiatives underway at the Vince brand,” he added.
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