Kellwood Company has completed the sale of its Smart Shirts manufacturing operations and related real estate assets in two separate transactions resulting in gross proceeds of approximately US$162m.

Kellwood received approximately $121m in cash from the sale of the Smart Shirts business to Youngor Group and separately sold its Smart Shirts real estate assets in Hong Kong to Bright Treasure Development for approximately $41m in cash.

The deal was first announced in November.

Robert C Skinner, Jr, chairman, president and chief executive officer of Kellwood, said: "This previously announced sale is an important step in the execution of our long-term financial and strategic plans.

"We significantly reduced our percentage of private label business and eliminated capital-intensive manufacturing from our operations while enhancing our focus on the development of lifestyle brands with the strongest opportunities for sales and earnings growth."

The proceeds from the transactions will be used to repurchase shares and reduce debt, the company said.