The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Completes the Acquisition of l.e.i.
NEW YORK, Aug. 16 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) today announced that it has completed its acquisition of RSV
Sport, Inc. and its related companies, herein referred to as l.e.i. As a
leading designer, manufacturer and distributor of girls' and young women's
moderately-priced jeanswear, l.e.i. generated net sales of $248 million for
the year ended December 31, 2001. Its products are marketed nationwide to
national chains, department stores, and specialty retailers, including May
Company, Federated, Nordstrom, J.C. Penney, Kohl's, Sears, and Mervyn's.
Licensed products under the l.e.i. brand include footwear, knit tops,
children's apparel, underwear, accessories, sunglasses and handbags.
The aggregate purchase price totaled $309.0 million, which includes
payments to the selling shareholders of $272.5 million in cash and the
issuance of approximately one million shares of Jones common stock valued at
$35.04 per share for financial reporting purposes. Approximately
$83.2 million of funded debt and accrued interest was also assumed and
subsequently refinanced. The selling shareholders and certain employees of
l.e.i. will also be entitled to receive future payments of up to $70 million
in the form of cash and/or common stock if certain earnings targets are
achieved during the three years following the closing of the transaction. If
fully earned, approximately $61.0 million of any such future payments would be
treated as goodwill.
Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 Company, is a
leading designer and marketer of branded apparel, footwear and accessories.
The Company's nationally recognized brands include: Jones New York; Lauren by
Ralph Lauren, Ralph by Ralph Lauren, and Polo Jeans Company, which are
licensed from Polo Ralph Lauren Corporation; Evan-Picone, Rena Rowan, Norton
McNaughton, Gloria Vanderbilt, Erika, Energie, Currants, Jamie Scott, Todd
Oldham, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Napier and Judith
Jack. The Company also markets costume jewelry under the Tommy Hilfiger brand
licensed from Tommy Hilfiger Corporation and the Givenchy brand licensed from
Givenchy Corporation. Celebrating more than 30 years of service, the Company
has built a reputation for excellence in product quality and value, and in
Certain statements herein are "forward-looking statements" made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements represent the Company's expectations
or beliefs concerning future events that involve risks and uncertainties,
including the strength of the economy and the overall level of consumer
spending, the performance of the Company's products within the prevailing
retail environment, and other factors which are set forth in the Company's
2001 Form 10-K and in all filings with the SEC made by the Company subsequent
to the filing of the Form 10-K. The Company does not undertake to publicly
update or revise its forward-looking statements as a result of new
information, future events or otherwise.
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SOURCE Jones Apparel Group, Inc.
Web site: http: //www.jny.com
CONTACT: Wesley R. Card, Chief Operating and Financial Officer, or Anita Britt, Executive Vice President Finance, both of Jones Apparel Group, +1-215-785-4000