The Jones Group Inc. (ticker: JNY, exchange: New York Stock Exchange (.N))
News Release -
Jones Apparel Group, Inc. Completes the Acquisition of Kasper A.S.L., Ltd.
NEW YORK, Dec. 2 /PRNewswire-FirstCall/ -- As announced yesterday, Jones
Apparel Group, Inc. (NYSE: JNY) has completed its acquisition of 100% of the
common stock of Kasper A.S.L., Ltd. ("Kasper"). The purchase price consists
of $221.0 million in cash and is subject to certain post-closing adjustments,
including an adjustment based on closing working capital.
Peter Boneparth, Chief Executive Officer, stated, "We are very positive
about this acquisition and look forward to the many opportunities that will
present themselves now that Kasper is part of Jones Apparel Group. The
addition of such highly-recognizable brands as Kasper, Anne Klein, Albert
Nipon and LeSuit to our existing portfolio is an important component of our
Mr. Boneparth added, "I would like to welcome the Kasper team, which
involves many talented associates, to Jones Apparel Group. Together, with a
common focus, we intend to profitably grow the Kasper group of brands for the
long-term benefit of our shareholders."
Wesley Card, Chief Operating and Financial Officer, commented, "We expect
Kasper to add $415 to $435 million in 2004 net revenues to our previous net
revenue forecast of $4.0 billion, and approximately $.15 of earnings per share
to our previous 2004 earnings forecast of $2.25 to $2.50, thereby increasing
forecasted 2004 earnings per share to a range of $2.40 to $2.65. Our revised
2004 guidance does not reflect the impact of possible financial transactions,
such as stock repurchases and changes to our capital structure, or of
additional acquisitions. As previously reported, we funded this acquisition
with cash and project a net funded debt to book capitalization ratio of
approximately 22% at December 31, 2003."
Company management will host a conference call to discuss this
announcement today at 9:00 am eastern time, which is accessible by dialing
412-858-4600 or through a webcast at www.jny.com.
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, Norton
McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit,
Enzo Angiolini, Bandolino, Napier, Judith Jack, Kasper, Anne Klein, Albert
Nipon and LeSuit. 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 operational execution.
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.