USA: Perry Ellis Completes Salant Acquisition
Perry Ellis International Inc has completed its purchase of menswear firm Salant Corporation and said it expects the $91 million deal to result in "solid revenue and earnings growth".
The Florida-based company announced it February it had agreed to pay around $52m in cash and $39m of newly-issued stock for Salant whose brands include Axis and Tricots St Raphael.
Salant sells its products to department stores, specialty stores, major discounters and national chains and operates 39 retail outlet stores in various parts of the US.
Perry Ellis chairman and CEO, George Feldenkreis, said: "This merger of Perry Ellis and Salant creates one of the largest men's sportswear companies in the world.
"With the addition of Axis, Tricots St. Raphael, and the Ocean Pacific license, our company now controls a portfolio of 25 brands with a diversified product management of the offerings. We present a portfolio that spans the spectrum of retail distribution."
CFO Timothy Page added: "This transaction is very compelling from a financial perspective. We expect it to add solid revenue and earnings growth, strengthen our balance sheet and increase the public float of our stock resulting in greater liquidity for our shareholders.
"On an annualised basis, revenues are projected to be in the $600m range, and earnings per share are expected to increase approximately $0.25 to $0.30 per fully diluted, post merger share. We confirm our guidance of $2.60 per share for this fiscal year."
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