Apparel and accessories manufacturer, Jaclyn Inc, announced on Tuesday it has signed a letter of intent to acquire Topsville Inc, a New York-based maker and distributor of private-label children's clothing.

The company said in a statement it expects the deal to add about $35 million in revenue during the first year after completion. The acquisition, which is subject to a definitive agreement and other conditions, is expected to close in early January.

Jaclyn also announced it plans to close its Susan Gail handbag division by June. The Susan Gail business, which includes sales of Anne Klein and Anne Klein 2 handbags and small leather goods, is projected to report $6 million in revenue for fiscal 2002.

Jaclyn said Kasper ASL Ltd's Anne Klein unit intends to continue sales of Anne Klein and Anne Klein 2 handbags and small leather goods after Susan Gail's operations have ceased.

Jaclyn, which had $79.6 million in revenue for the year ended June 30, designs and makes apparel, handbags and related accessories.

Commenting on the move, Robert Chestnov, president and chief executive officer of Jaclyn Inc, said: "The planned acquisition of Topsville is another positive step in the company's previously announced policy of identifying and acting upon new opportunities as they arise. We believe that the transaction will better position Jaclyn in very difficult economic and retail environments.''