Global Brands said it has received a cash amount of about US$1.2bn with the final consideration being subject to certain post-closing adjustments, which are not currently expected to involve a material amount.
When news of the sale first broke in June, the deal was valued at $1.38bn.
Now, following the completion of the deal, Bruce Rockowitz has stepped down as CEO of Global Brands and will continue as non-executive vice chairman of the group. Rick Darling, former president of LF USA, which was the predecessor of Global Brands Group, has been named as his successor.
Darling most recently served as executive director of LF Americas, Li & Fung Limited’s wholesale and distribution business in the US.
“Today represents a new chapter for Global Brands,” he says. “Coming out of this deal, we now have a very strong balance sheet and robust cash flow. We have emerged a more agile and focused company with great brands in our men’s and women’s apparel and footwear platforms to which we will be adding more brands in the future.
“I’m excited to take on a leadership role in this new era of Global Brands and look forward to working with our senior leadership team to continue to accelerate growth and deliver additional value to our customers, business partners and shareholders.”
William Fung, chairman of Global Brands Group Holding Limited, added the completion of the transaction gives the group the ability to strengthen its balance sheet, and to improve value to shareholders.