US: Endeavor to vote on American Apparel buy
Investment vehicle Endeavor Acquisition is today (12 December) holding a special shareholder meeting to vote on the proposed acquisition of LA-based American Apparel Inc.
If the transaction is approved then Endeavor and American Apparel, the manufacturer/retailer of US-produced T-shirts and other cotton basics, plan to complete the acquisition "promptly" following the meeting, the companies said.
It was first announced in December last year that American Apparel had received a US$244m offer from Endeavor, including the assumption of about $110m in debt.
Endeavor plans to take the manufacturer public and expand store count.
In connection with closing the deal, Endeavor said today it will issue approximately 37.3m shares to American Apparel founder and chief executive, Dov Charney, and pay cash of approximately $67.9m to the other stockholder.
In addition, $2.5m aggregate amount of cash bonuses also will be paid to certain current American Apparel employees, and American Apparel will repay certain insider loans.
Immediately prior to closing, American Apparel will distribute an aggregate of approximately $15.8m to American Apparel's existing stockholders in connection with their personal income tax responsibilities for 2006 and for 2007 through the date of closing, a statement continued.
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