Perry Ellis International (NASDAQ:PERY) announced today that it has
completed its previously announced acquisition of C&C California and
Laundry brands from Liz Claiborne. The transaction is valued at $33.1
million, including approximately $10.1 million in inventory at closing.
The company funded the acquisition with funds from its credit line.
Both brands are ideally positioned to address the fastest growing
segment within women’s apparel: contemporary.
C&C California developed a celebrity following for its buttery soft
cottons and flattering fits, leading women around the world to stack
their closets with easy layering pieces exemplifying California chic.
Laundry’s unique point of view places it among
the most exciting and sought after collections in the contemporary
market, and is a reigning go-to source for flirty, sophisticated
dresses. Both brands sell in luxury retail stores and high-end specialty
boutiques; C&C California is also available online at www.candccalifornia.com.
Together they will join the Original Penguin brand to form the company’s
new Contemporary Business Platform.
"Contemporary women’s represents a great
opportunity for us, and we are pleased to have acquired two brands that
are so well positioned to take advantage of the current momentum in the
segment," said George Feldenkreis, Perry Ellis International chairman
and CEO. "We will be aggressively pursuing the opportunities that this
new avenue of growth presents to us, and continue to expect the
acquisition to be accretive to fiscal 2009 results," Mr. Feldenkreis
concluded.
"This acquisition marks our entry into contemporary women’s
sportswear with two great brands poised for expansion. We are excited
not only about the potential for product extensions and synergies
throughout our existing business platforms, but for the significant
talent that this new team brings to the Perry Ellis International
family," said Oscar Feldenkreis, president and COO.
Perry Ellis International expects total revenues for C&C California and
Laundry during Fiscal 2009 to be approximately flat to those of fiscal
2008. Accretion for fiscal 2009 earnings per share is expected in the
range of $0.08 to $0.10.
About Perry Ellis International
Perry Ellis International, Inc. is a leading designer, distributor and
licensor of a broad line of high quality men’s
and women’s apparel, accessories, and
fragrances. The company’s collection of dress
and casual shirts, golf sportswear, sweaters, dress and casual pants and
shorts, jeans wear, active wear and men’s and
women’s swimwear is available through all
major levels of retail distribution. The company, through its wholly
owned subsidiaries, owns a portfolio of nationally and internationally
recognized brands including Perry Ellis®,
Jantzen®, Cubavera®,
Savane®, Munsingwear®,
Original Penguin® by
Munsingwear®, AXIST®,
Grand Slam®, John
Henry®, Natural Issue®,
Farah®, Pro Player®,
Manhattan®, the
Havanera Co. ®, Axis®,
Tricots St. Raphael®,
Mondo di Marco®,
Redsand®, Gotcha®,
Girl Star® and MCD®.
The company enhances its roster of brands by licensing trademarks from
third parties including Dockers®
for outerwear, Nike®
and JAG® for
swimwear, and PING®
and PGA TOUR® for
golf apparel. Additional information is available at http://www.pery.com.
Safe Harbor Statement
We caution readers that the forward-looking statements (statements which
are not historical facts) in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on current expectations
rather than historical facts and they are indicated by words or phrases
such as "anticipate,” "could,” "may,” "might,” "potential,” "predict,” "should,” "estimate,” "expect,” "project,” "believe,” "plan,” "envision,” "continue,” "intend,” "target,” "contemplate,”
or "will” and
similar words or phrases or comparable terminology. We have based such
forward-looking statements on our current expectations, assumptions,
estimates and projections. While we believe these expectations,
assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known and
unknown risks and uncertainties, and other factors that may cause actual
results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements, many of which are beyond our control. These
factors include: general economic conditions, a significant decrease in
business from or loss of any of our major customers or programs,
anticipated and unanticipated trends and conditions in our industry,
including the impact of recent or future retail and wholesale
consolidation, the effectiveness of our planned advertising, marketing
and promotional campaigns, our ability to contain costs, disruptions in
the supply chain, our future capital needs and our ability to obtain
financing, our ability to integrate acquired businesses, trademarks,
tradenames and licenses, our ability to predict consumer preferences and
changes in fashion trends and consumer acceptance of both new designs
and newly introduced products, the termination or non-renewal of any
material license agreements to which we are a party, changes in the
costs of raw materials, labor and advertising, our ability to carry out
growth strategies including expansion in international and direct to
consumer retail markets, the level of consumer spending for apparel and
other merchandise, our ability to compete, exposure to foreign currency
risk and interest rate risk, possible disruption in commercial
activities due to terrorist activity and armed conflict, and other
factors set forth in Perry Ellis International’s
filings with the Securities and Exchange Commission. Investors are
cautioned that all forward-looking statements involve risks and
uncertainties, including those risks and uncertainties detailed in Perry
Ellis’ filings with the SEC. You are
cautioned not to place undue reliance on these forward-looking
statements, which are valid only as of the date they were made. We
undertake no obligation to update or revise any forward-looking
statements to reflect new information or the occurrence of unanticipated
events or otherwise.
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