Leading apparel company Perry Ellis International Inc on Tuesday announced it had agreed to acquire menswear designer, distributor and major Perry Eliis licensee, Salant Corp, for around $91 million in cash and stock.

The Florida-based firm, behind brands such as John Henry and Manhattan, said in a news release it would pay about $52m in cash and around $39m of newly-issued stock for Salant whose brands include Axis and Tricots St Raphael.

It expects the deal to generate between $230m and $250m in annual revenue and said it would immediately add between 25 cents and 30 cents to its full-year earnings a diluted share after completion.

Ellis added the acquisition would also let it exercise more control over its various brands, improve distribution and build a stronger licensing business both domestically and internationally.

Chairman and CEO, George Feldenkreis, commented: "Not only do we believe that this transaction will be highly beneficial for our shareholders from a financial perspective, but it should also take our company to the next level with respect to infrastructure and capacity for future growth.

"This transaction should allow us to exercise greater control of the brand's major product categories, more effectively rationalise distribution channels of Perry Ellis sub-brands and enhance our efforts to build a stronger domestic and international licensing businesses.

"Furthermore, with this transaction, we will acquire two additional strong brands in Axis and Tricots St Raphael, which have great name recognition at premium retailers, to add to our family of brands."

Salant chairman and CEO, Michael Setola, added: "The increasingly competitive nature of our industry will require strong brands with talented management teams, supported by highly efficient operating platforms to grow and flourish in the years ahead.

"I am confident that this union provides each of those components to the enhanced organisation of Perry Ellis. This is a great opportunity for both companies to further improve its leadership position in the menswear industry."