MIAMI--(BUSINESS WIRE)--Perry Ellis International (“Perry Ellis”)(NASDAQ:PERY) today completed its previously announced acquisition of substantially all of the assets of Rafaella Apparel Group, Inc, (“Rafaella”) an entity controlled by affiliates of Cerberus Capital Management, L.P. Before final net working capital adjustments to the closing balances, the transaction purchase price is $80 million, which includes approximately $20 million of working capital in addition to warrants to purchase 106,564 shares of common stock issued to Rafaella. The Company funded the acquisition through its senior credit facility.
“The addition of Rafaella represents a great opportunity for us, and we are very pleased to have acquired a brand that we believe is so well positioned to take advantage of the many opportunities in the women’s apparel arena today,” commented George Feldenkreis, chairman and chief executive officer of Perry Ellis. “As we become a more significant player in the women’s space, we will be aggressively pursuing several growth avenues to ensure that we continue diversifying our business model and delivering strong results this fiscal year,” continued Mr. Feldenkreis.
The Company currently estimates that total revenue derived from the Rafaella assets during fiscal 2012 will be approximately $120 million. In addition, the acquisition of the Rafaella assets is currently expected to be accretive to fiscal 2012 earnings per share by approximately $.40.
“We are excited not only about the potential for product extensions and synergies throughout our existing brands Laundry by Shelli Segal® and C&C California®, but for the significant talent that this new team brings to the Perry Ellis International family,” commented Oscar Feldenkreis, president & chief operating officer of Perry Ellis. “With the addition of Rafaella, women’s & contemporary now becomes a much more significant part of our overall business.
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®, Laundry by Shelli Segal®, C&C California®, Cubavera®, Centro®, Solero®, Munsingwear®, Savane®, Original Penguin® by Munsingwear®, Grand Slam®, Natural Issue®, Pro Player®, the Havanera Co.®, Axis®, Tricots St. Raphael®, Gotcha®, Girl Star®, MCD® John Henry®, Mondo di Marco®, Redsand®, Manhattan®, Axist® and Farah®. The Company enhances its roster of brands by licensing trademarks from third parties including Pierre Cardin® for men’s sportswear, Nike® and Jag® for swimwear, and Callaway®, TOP-FLITE®, PGA TOUR® and Champions Tour® for golf apparel. Additional information on the Company 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, trade names 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.