Perry Ellis acquires C&C California and Laundry brands from Liz Claiborne
Perry Ellis International (Nasdaq: PERY) said this morning that it has acquired C&C California and Laundry brands from Liz Claiborne Inc. for $37 million and anticipates the brands will contribute an additional $60 million in revenue by 2009.
“These acquisitions, which advance Perry Ellis International’s growth strategy with two strong brands, with a very young following,” said George Feldenkreis, chief executive officer of Perry Ellis. "The addition of C&C California and Laundry will allow us to aggressively pursue women’s apparel in the contemporary segment, which is the fastest growing one of the women’s market today. With this acquisition, we increase our long-term growth potential.”
The fashion label says it thinks revenues from its two new contemporary brands should increase at a double digit annual rate over the next five years. The acquisition is said to have no impact on fiscal 2008, but that accretion in the range of $0.08 to $0.10 is expected in fiscal 2009.
The company said it expects to close the acquisition by Feb. 4.
Shares of Perry Ellis (PERY) were halted in pre-market trading.
