Fifth & Pacific completes sale of Lucky Brand Jeans

Fifth & Pacific Companies has completed the sale of Lucky Brand Dungarees to an affiliate

of Leonard Green & Partners for total consideration of 225 million dollars, with 140 million dollars in cash at closing and the remaining 85 million dollars financed in the form of a three year, secured, seller note, subject to certain capital adjustments.

With this development, Carlos Alberini, formerly Co-Chief Executive Officer of Restoration Hardware Holdings will become the Chairman of the Board and Chief Executive Officer of Lucky Brand Jeans. Alberini is also making a significant equity contribution in connection with the acquisition of Lucky Brand Jeans.

Fifth & Pacific will support the transferred business through a Transition Services Agreement (TSA) with Lucky Brand Jeans while Lucky Brand creates a standalone infrastructure. Taken together, the divestitures of Juicy Couture and Lucky Brand Jeans are expected to result in estimated net proceeds of 370 million dollars to 380 million dollars, which includes the face value of the seller note in the Lucky Brand transaction.

Earlier, in November 2013, the company also completed the sale of the Juicy Couture intellectual property to Authentic Brands Group (ABG). The company also has a license for the Liz Claiborne New York brand, available at QVC, and Lizwear, which is distributed through the club store channel.