Women's specialty retailer Cache has completed the acquisition of its largest supplier, Adrienne Victoria Designs. The principals of the firm will receive US$16m, $3.5m at closing and the remaining $12.5m over four years if certain performance levels are attained.

Cache announced it had agreed to acquire Adrienne Victoria Designs, which is responsible for 27% of Cache's sales, on 9 May but didn't disclose financial terms at that time.

Adrienne Kantor and Robert Kantor, founders of AVD, will stay on with the firm and become executive vice president of design and merchandising and executive VP of manufacturing and product development, respectively.

Both companies are based in New York.

"The acquisition of Adrienne Victoria Designs allows us to advance our strategy of becoming a vertically integrated retailer, while enabling us to benefit from the tremendous design strength of their highly talented team," commented Brian Woolf, chairman and chief executive officer of Cache.

"Importantly, we know the company well, having worked with Adrienne, Robert and the team for over 15 years, and due to the consistently strong performance of their designs, Adrienne Victoria Designs' business has grown with us each year."

Financo served as advisor to Cache and Marketing Management Group advised Adrienne Victoria. Cache financed the purchase with cash on hand.

Cache operates 294 Cache and Cache Luxe stores in 44 US states, the Virgin Islands and Puerto Rico.

By Arnold J Karr.