G-III buys luxury swimwear brand Vilebrequin for about $106 mln
Aug 7 (Reuters) - G-III Apparel Group Ltd said it acquired luxury swimwear brand Vilebrequin from private equity fund Fashion Fund I B.V. for 85.5 million euros ($106.19 million) and outlined plans to expand the brand internationally.
The company plans to add more retail locations throughout the world and further develop the brand's men's accessories and resort-wear offerings, G-III said in a statement.
Of the purchase price, 70.5 million euros was paid in cash and 15 million euros was paid by unsecured promissory notes, due December 31, 2017, with interest at the rate of 5 percent per year.
In addition to the purchase price, the agreement provides for up to an additional 22.5 million euros in milestone payments.
G-III funded the cash portion of the deal with its newly expanded $450 million bank facility.
Vilebrequin sells its products through 185 owned and franchised specialty retail stores, as well as wholesale distribution. It had 2011 sales of 45.1 million euros.
The company said the acquisition is expected to be neutral to its earnings per share for its fiscal year ending Jan. 31, 2013 excluding acquisition and integration expenses.
Barclays acted as the exclusive financial advisor to G-III.
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