The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Announces Acquisition of Robert Rodriguez, Contemporary Fashion BrandNEW YORK, Feb 04, 2010 /PRNewswire via COMTEX/ -- Jones Apparel Group, Inc. ("Jones") (NYSE: JNY) today announced that it has acquired Moda Nicola International, LLC ("MNI"), owner of the Robert Rodriguez Collection, a privately held designer, marketer and wholesaler of women's contemporary eveningwear and sportswear. MNI generated net revenues of approximately $17 million for the year ended December 31, 2009.
The transaction is valued at approximately $28 million. Under the terms of the agreement, Jones made initial cash payments to the selling members of MNI, who are entitled to receive future cash payments upon achievement of certain financial targets set within the agreement. The transaction is expected to be accretive to earnings, prior to any required purchase accounting adjustments and closing costs.
Wesley Card, President and Chief Executive Officer, Jones Apparel Group, said: "Robert Rodriguez is a highly talented and experienced designer and we are excited to welcome Robert and his associates into our family of brands. We believe that now is the right time to be making an acquisition as our core brands and organization are strong, and we are well-positioned for a new phase of growth. Robert Rodriguez will increase our presence in the contemporary market."
Mr. Card added: "Recognized for its unique designs, commitment to elegant fashion and attention to quality and fit, the Robert Rodriguez collection has gained attention from fashion insiders, including buyers, trendsetters and celebrities. We see great potential in this brand and look forward to working with Robert and his team."
Robert Rodriguez, founder and artistic director, said, "I am excited to become part of a dynamic organization such as Jones and to work together to develop the brands to their fullest potential."
Nicola Guarna, Chief Executive Officer, Robert Rodriguez, said, "I look forward to joining the Jones team and to combining the Robert Rodriguez fashion talent with the Jones execution and performance."
Founded in 2003 by designer Robert Rodriguez and business partner Nicola Guarna, the Robert Rodriguez collection quickly gained attention from buyers, celebrities and trendsetters alike for being a feminine, sexy, contemporary label for women of all ages. The Robert Rodriguez collection incorporates the principles of haute couture: focusing on fashion, quality and fit. The collection, which includes Robert Rodriguez, Robert Rodriguez Black Label and Robbi and Nikki, is currently sold at luxury retailers in the U.S. and Europe, such as Bergdorf Goodman, Neiman Marcus, Nordstrom, Saks Fifth Avenue, Bloomingdale's, Fred Segal, Intermix, Shopbop, Holt Renfrew, Harrods, and Lane Crawford, as well as at numerous high-end boutiques nationwide.
About Jones Apparel Group, Inc.
Jones Apparel Group, Inc. (www.jonesapparel.com) is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company also markets directly to consumers through its chain of specialty retail and value-based stores and through its e-commerce web sites. The Company's nationally recognized brands include Jones New York, Nine West, Anne Klein, Gloria Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan-Picone, l.e.i., Energie, Enzo Angiolini, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Albert Nipon and Le Suit. The Company also markets costume jewelry under the Givenchy brand licensed from Givenchy Corporation, women's footwear under the Dockers(R) and Dockers(R) Women brands and infants', toddlers' and boys' footwear (excluding girls' footwear) under the Dockers(R) and Dockers(R) Premium brands, licensed from Levi Strauss & Co., apparel and accessories under the Rachel Roy brand licensed from Rachel Roy IP Company, LLC, and Jessica Simpson jeanswear licensed from VCJS, LLC. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. The Company contracts for the manufacture of its products through a worldwide network of quality manufacturers. The Company has capitalized on its nationally known brand names by entering into various licenses for several of its trademarks, including Jones New York, Anne Klein New York, Nine West, Gloria Vanderbilt, l.e.i. and Evan-Picone, with select manufacturers of women's and men's products which the Company does not manufacture. For more than 30 years, the Company has built a reputation for excellence in product quality and value, and in operational execution.
Forward Looking Statements
Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding the Company's expected financial position, business and financing plans are forward-looking statements. The words "believes," "expects," "plans," "intends," "anticipates" and similar expressions identify forward-looking statements. Forward-looking statements also include representations of the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including:
- those associated with the effect of national, regional and international economic conditions;
- lowered levels of consumer spending resulting from a general economic downturn or lower levels of consumer confidence;
- the tightening of the credit markets and our ability to obtain credit on satisfactory terms;
- given the uncertain economic environment, the possible unwillingness of committed lenders to meet their obligations to lend to borrowers, in general;
- the performance of the Company's products within the prevailing retail environment;
- customer acceptance of both new designs and newly-introduced product lines;
- the Company's reliance on a few department store groups for large portions of the Company's business;
- the Company's ability to identify acquisition candidates and, in a competitive environment for such acquisitions, acquire such businesses on reasonable financial and other terms;
- the integration of the organizations and operations of any acquired businesses into the Company's existing organization and operations;
- consolidation of the Company's retail customers;
- financial difficulties encountered by the Company's customers;
- the effects of vigorous competition in the markets in which the Company operates;
- the Company's ability to attract and retain qualified executives and other key personnel;
- the Company's reliance on independent foreign manufacturers;
- changes in the costs of raw materials, labor, advertising and transportation;
- the general inability to obtain higher wholesale prices for the Company's products that the Company has experienced for many years;
- the uncertainties of sourcing associated with an environment in which general quota has expired on apparel products but litigation and political activity seeking to re-impose quotas have been initiated;
- the Company's ability to successfully implement new operational and financial computer systems; and
- the Company's ability to secure and protect trademarks and other intellectual property rights.
A further description of these risks and uncertainties and other important factors that could cause actual results to differ materially from the Company's expectations can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, including, but not limited to, the Statement Regarding Forward-Looking Disclosure and Item 1A-Risk Factors therein, and in the Company's other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
John T. McClain, Chief Financial Officer
Jones Apparel Group
Joele Frank and Jennifer Friedman
Joele Frank, Wilkinson Brimmer Katcher
SOURCE Jones Apparel Group, Inc.