G-III Apparel Group Closes Acquisition of Donna Karan International
December 01 2016 - 12:15PM
Business Wire
G-III Apparel Group, Ltd. (NASDAQ:GIII) announced today that it
has completed its acquisition of Donna Karan International, Inc.,
parent of the Donna Karan and DKNY brands.
Morris Goldfarb, Chairman and Chief Executive Officer of G-III,
commented, “Donna Karan International is a transformative addition
to our global portfolio of iconic brands and enhances our position
as a fashion leader. We believe there is a need for these brands in
the market and that DKNY alone has the potential to generate $1
billion in annual sales. Working closely with our partners and
through our strong licensing network, we are confident we can
quickly bring to market a comprehensive and compelling lifestyle
offering that will restore the DKI brands to prominence and excite
consumers.”
Mr. Goldfarb continued, “We have always sought to build our
business in a way that will provide us with long-term sustainable
growth. DKI’s brands – DKNY, Donna Karan and DKNY Jeans – fit
squarely with that strategy and are now part of the powerful G-III
portfolio that includes Calvin Klein, Karl Lagerfeld and Tommy
Hilfiger. Donna Karan is an excellent growth catalyst for our
company and we are well positioned to continue to capitalize on the
significant opportunities ahead.”
Transaction Details
G-III funded the total purchase price of $650 million, subject
to certain adjustments, with a combination of (i) cash, (ii) $75
million of newly issued shares of our common stock to LVMH and
(iii) a $125 million junior lien seller note, of which $75 million
in principal amount has a six and a half year maturity and $50
million in principal amount has a seven year maturity. The cash
portion of the purchase price was paid from the proceeds of a $350
million six-year senior secured term loan, and the balance from
borrowings under a $650 million five-year senior secured asset
based revolving credit facility and cash on hand. The new revolving
credit facility refinanced and replaced the Company’s existing
credit facility.
Barclays acted as the exclusive financial advisor to G-III.
Norton Rose Fulbright US LLP and Simpson Thacher & Bartlett LLP
acted as legal advisors to G-III. Barack Ferrazzano Kirschbaum
& Nagelberg LLP acted as legal advisor to LVMH.
About G-III Apparel Group,
Ltd.
G-III is a leading manufacturer and distributor of apparel and
accessories under licensed brands, owned brands and private label
brands. G-III’s owned brands include Donna Karan, DKNY,
Vilebrequin, Andrew Marc, Marc New York, Bass, G.H. Bass, Weejuns,
G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica
Howard. G-III has fashion licenses under the Calvin Klein, Tommy
Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan, Guess?, Jones
New York, Jessica Simpson, Vince Camuto, Ivanka Trump, Ellen Tracy,
Kensie, Levi's and Dockers brands. Through our team sports
business, G-III has licenses with the National Football League,
National Basketball Association, Major League Baseball, National
Hockey League, Hands High, Touch by Alyssa Milano and more than 100
U.S. colleges and universities. G-III also operates retail stores
under the Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin
and Calvin Klein Performance names.
Statements concerning G-III's business outlook or future
economic performance, anticipated revenues, expenses or other
financial items; product introductions and plans and objectives
related thereto; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or
other matters are "forward-looking statements" as that term is
defined under the Federal Securities laws. Forward-looking
statements are subject to risks, uncertainties and factors which
include, but are not limited to, reliance on licensed product,
reliance on foreign manufacturers, risks of doing business abroad,
the current economic and credit environment, the nature of the
apparel industry, including changing customer demand and tastes,
customer concentration, seasonality, risks of operating a retail
business, customer acceptance of new products, the impact of
competitive products and pricing, dependence on existing
management, possible disruption from acquisitions and general
economic conditions, as well as other risks detailed in G-III's
filings with the Securities and Exchange Commission. G-III assumes
no obligation to update the information in this release.
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version on businesswire.com: http://www.businesswire.com/news/home/20161201006070/en/
G-III Apparel Group, Ltd.Neal S. Nackman,
212-403-0500Chief Financial OfficerorInvestor Relations:ICR,
Inc.James R. Palczynski, 203-682-8229
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