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G-III Apparel buys out Marvin Richards & Winlit outerwear businesses

12 Jul '05

5 min read

Leather and non-leather apparel designing, manufacturing & marketing company G-III Apparel Group Ltd (GIII) announced that it has acquired two privately-held outerwear businesses, Marvin Richards and Winlit.

Both transactions are expected to be accretive to G-III's net income per share for this fiscal year and to complement the Company's existing group of licensed and private label programs. The acquisitions are expected to result in opportunities for expense leverage, economies of scale, and sales growth.

Aggregate annual sales volume of acquired businesses in excess of $100 Million

Morris Goldfarb, Chairman and Chief Executive Officer of G-III Apparel Group Ltd said, "It has become highly important, given the accelerating consolidation of retailers and apparel manufacturers, to heighten our competitiveness and to position our Company to service the needs of an increasingly demanding base of customers. Through these transactions, we expect to improve our position in our industry and look forward to demonstrating the benefits of our new business structure to our customers and shareholders."

Jeanette Nostra, President of G-III, said "They believe our customers and the market will react enthusiastically to the added diversity of our product offerings that will result from these transactions."

The Company has acquired J. Percy for Marvin Richards, Ltd. and affiliated companies for $19.2 million and 466,666 shares of G-III common stock. G-III may also be required to issue up to 150,000 additional shares of its common stock based on the future market price of its shares.

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