The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Increases Purchase Price for Kasper A.S.L., Ltd.;
Closing of Transaction Expected in Early December
NEW YORK, Nov. 12 /PRNewswire-FirstCall/ -- Jones Apparel Group, Inc.
(NYSE: JNY) today reported that it has agreed to increase its purchase price
for Kasper A.S.L., Ltd. by $17.0 million in order to facilitate a timely
closing of the transaction. The increase in purchase price is subject to
receipt of agreements by certain Kasper stakeholders by the close of business
today. The adjusted purchase price consists of $221.0 million in cash and the
assumption of pre-paid royalties projected to be $11.5 million at closing, for
an aggregate value of $232.5 million, plus the assumption of certain other
liabilities. In addition, the purchase price is subject to adjustments,
including an adjustment based on working capital. The increase has helped
facilitate an agreement among the Kasper Creditors' Committee and the Equity
Committee on the distribution of the proceeds from the sale of Kasper, and
should permit the closing of the transaction in early December 2003.
Peter Boneparth, Chief Executive Officer, stated, "Jones has agreed to
increase the purchase price in order to achieve our primary objective - the
timely closing of this transaction for the benefit of our shareholders. The
increased purchase price continues to meet our acquisition and return on
Mr. Boneparth added, "Our respective teams are working diligently and
closely with a singular focus on obtaining confirmation of the Plan of
Reorganization by the Bankruptcy Court on November 19, 2003, leading to a
scheduled closing date in early December 2003. As is our historical practice,
we look forward to providing further updates once the transaction has closed."
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; Polo Jeans
Company licensed from Polo Ralph Lauren Corporation; Evan-Picone, Rena Rowan,
Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, 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, and footwear and accessories under the ESPRIT brand licensed from
Esprit Europe, B.V. 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
2002 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.
SOURCE Jones Apparel Group, Inc.