The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
The Jones Group Inc. Confirms Discussions With Delta Galil Industries Regarding Possible Sale of Jeanswear Division
NEW YORK, Oct. 11, 2011 /PRNewswire via COMTEX/ --
The Jones Group Inc. (NYSE: JNY; the "Company" and "Jones") today confirmed that it is in discussions with Delta Galil Industries Ltd. (DELT/Tel Aviv Stock Exchange, DELTY.PK/OTCQX), the global manufacturer and marketer of branded and private label apparel products for men, women and children, regarding the potential sale of Jones' Jeanswear division for an estimated aggregate amount between $350 and $400 million, which would be subject to change depending upon the level of net working capital and additional adjustments. Earlier today, in compliance with Israeli law and in response to Israeli media speculation regarding a potential transaction, Delta Galil issued a press release confirming discussions with Jones.
The Company expects that discussions with Delta Galil will be concluded or terminated within a month. The Jones Group notes that no agreement has been reached and there can be no assurances that any transaction will result from these discussions.
If a transaction were to be consummated, Jones currently contemplates using a substantial portion of the net proceeds from the transaction to conduct share repurchases. No definitive decisions have been reached regarding the use of proceeds from a potential transaction, including the terms or timing of any such actions.
Jones does not intend to make any additional comments regarding this matter unless and until a formal agreement has been reached or discussions have been terminated.
About The Jones Group Inc.
The Jones Group Inc. (www.jonesgroupinc.com) is a leading global designer, marketer and wholesaler of over 35 brands with best-in-class product expertise across five divisions: apparel, footwear, jeanswear, jewelry and handbags. The Jones Group has a reputation for innovation, excellence in product quality and value, operational execution and talent. The Company also markets directly to consumers through branded specialty retail and outlet stores and through its e-commerce sites.
The Company's internationally recognized brands and licensing agreements (L) include: Nine West, Jones New York, Anne Klein, Kurt Geiger, Rachel Roy (L), Robert Rodriguez, Robbi & Nikki, Stuart Weitzman, B Brian Atwood (L), KG by Kurt Geiger, Boutique 9, Easy Spirit, Carvela, Gloria Vanderbilt, l.e.i., Bandolino, Enzo Angiolini, Nine & Co., GLO, Joan & David, Miss KG, Jones Wear, Andrew Marc/Marc Moto (L), Kasper, Energie, Evan-Picone, Le Suit, Mootsies Tootsies, Grane, Erika, Napier, Jessica Simpson (L), Dockers (L), Sam & Libby, Givenchy (L), Judith Jack, Albert Nipon and Pappagallo.
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, as well as any potential transaction with Delta Galil and the use of proceeds related thereto, are forward-looking statements. The words "believes," "expects," "plans," "intends," "contemplates," "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 the Company's ability to obtain capital 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, including political instability in countries where contractors and suppliers are located;
- changes in the costs of raw materials, labor, advertising and transportation, including the impact such changes may have on the pricing of the Company's products and the resulting impact on consumer acceptance of the Company's products at higher price points;
- the Company's ability to successfully implement new operational and financial computer systems;
- the Company's ability to secure and protect trademarks and other intellectual property rights; and
- the Company's and Delta Galil's ability to reach an agreement on any potential transaction and each party's ability to consummate any such transaction on the terms and timing so agreed.
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, 2010, 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.
SOURCE The Jones Group Inc.