Polo Ralph Lauren acquires footwear license

24 May '05

3 min read

leading designer, marketer & distributor of premium lifestyle products: apparel, home, accessories, polo ralph lauren corporation announced it has signed a definitive agreement to purchase ralph lauren footwear co inc its global licensee for footwear for men, women and children.

"they are very excited about the development of a global luxury accessories business and this acquisition moves us closer to that goal. they are assembling the right businesses and people to build our accessories into an important part of our future," said ralph lauren, chairman and chief executive officer.
.
"they are pleased to acquire our footwear business as they continue to execute our long-term strategy of taking more direct control of our valuable brands. they believe the development and refinement of our global footwear business is an excellent opportunity for growth at polo ralph lauren," said roger farah, president and chief operating officer. "they have been making investments in design and infrastructure to support this strategic initiative. the acquisition of our footwear licensee will be a key element of a successful accessories strategy."

the purchase of ralph lauren footwear is a cash transaction of approximately $110 million, subject to closing adjustments.

consummation of the transaction is subject to review under the provisions of the hart-scott-rodino antitrust improvements act and other customary closing conditions. the transaction is expected to be marginally dilutive to polo ralph lauren's earnings in fiscal 2006, taking into consideration purchase price allocation and the elimination of licensing royalties. the transaction is expected to close by the end of the second quarter of 2005.

More Textiles News - United States Of America...