From: ASAP
Jones Apparel Group, Inc. announced that it has entered into an agreement to acquire 100% of the common stock of Gloria Vanderbilt Apparel Corp. and 100% of the assets of Gloria Vanderbilt Trademark B.V. Gloria Vanderbilt is a leading designer, marketer and distributor of women's moderately priced stretch and twill jeanswear, with net sales of $146 million for the year ended December 31, 2001. Gloria Vanderbilt markets its products nationwide to national chains, department stores, mass merchants, and specialty retailers, including Kohl's, JCPenney, Mervyns, Costco and Federated Department Stores. Brands include Gloria Vanderbilt and junior product marketed under the GLO brand name. Licensed products under the Gloria Vanderbilt brand include footwear, watches, socks, sleepwear, outerwear, swimwear and hair accessories.
The transaction is valued at $138 million, which includes $80 million in cash payments, $20 million in Jones common stock and the assumption of approximately $38 million of funded debt and accrued interest. Cash payments and debt, which will be refinanced by Jones upon closing, will be funded through existing credit facilities. The owners of Gloria Vanderbilt Apparel will be entitled to receive a future payment in the form of cash and/or common stock if certain earnings targets are achieved for the one year following the closing of the transaction. The transaction is expected to close early in the second quarter of 2002.
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