Perry Ellis acquires UK subsidiary

The US apparel group Perry Ellis International Inc has received bankruptcy court approval for the acquisition of certain domestic operating assets as well as the outstanding capital stock of the UK subsidiary of Tropical Sportswear International for $88.5 million (GBP 49.8 million) in cash. The closing of this transaction is expected to take place on or before 26 February and will be funded by the proceeds from the company's senior credit facility.

George Feldenkreis, Chairman and CEO of Perry Ellis International, said, "This acquisition should add in excess of $230 million in net sales on an annualized basis, and we expect it will be $0.05 - $0.10 accretive in the first twelve months after acquisition. The combined bottoms volume of the two companies makes us one of the largest producers of men's pants in the world. We predicted years ago that retailer consolidation would transform relationships between apparel wholesalers and their customers, and our new assets make Perry Ellis International more valuable and important to its customers."

Oscar Feldenkreis, President and COO of Perry Ellis International, said, "This acquisition enhances our standing with our retail partners by adding many of Tropical's high profile labels to our branded portfolio, including Savane, Farah, and Banana Joe." He added that Tropical's UK subsidiary would provide the company with "an excellent platform for the future expansion of Perry Ellis International brands into Europe."

Perry Ellis International Inc designs, distributes, designs and licenses men's and women's apparel under brands such as Perry Ellis, Jantzen, Cubavera, Munsingwear, John Henry and Original Penguin. The company also licenses trademarks from third parties including Nike and Tommy Hilfiger for swimwear, PING and PGA Tour for golf apparel and Ocean Pacific for men's sportswear. Tropical Sportswear includes brands like Savane, Farah, Flyers, The Original Khaki Co and Bay to Bay.