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VF to Acquire CHIC and H.I.S. Brands
GREENSBORO, N.C. (ots-PRNewswire) - VF Corporation (NYSE: VFC), the world's largest apparel company, announced that it has acquired from Chic by H.I.S, Inc. (OTC: JNSC) the global trademark rights of the CHIC brand name and rights to the H.I.S. brand name outside of Europe. Terms were not disclosed.
In addition, VF has signed a letter of intent with Chic by H.I.S, Inc. to acquire its majority stake in H.I.S. Sportswear AG. The share acquisition is subject, among other things, to satisfactory completion of due diligence by VF, regulatory approvals and the successful completion of a proposed tender offer that would result in VF owning more than 75% of the shares of H.I.S. Sportswear AG. VF will be offering 9.25 euros per share for the remaining H.I.S. Sportswear AG shares, which are listed on the Munich and Frankfurt exchanges. If 100% of the shares are tendered, the aggregate purchase price for all of the H.I.S. shares upon successful completion of the tender offer will be approximately $40 million.
CHIC jeans and related sportswear, which are primarily targeted to women, are marketed in mass merchandise stores. The CHIC brand will become part of VF's Mass Jeanswear unit, headed by Angelo LaGrega, which also includes the Wrangler, Rustler, Riders, Brittania and Timber Creek brands. "The CHIC brand has a strong and distinct consumer franchise that will fit very well within our current mix of brands. With our marketing and systems support, we believe this brand would be a powerful addition to our women's jeans effort," said Mackey McDonald, VF's chairman and chief executive officer.
H.I.S. branded jeans and casual pants for men and women are sold primarily through specialty and department stores in Europe. With approximately $90 million in annual sales volume, the H.I.S. brand is the leading women's jeans brand in Germany. The brand will be added to VF's European jeans unit, which also markets the Wrangler, Lee, Maverick and Old Axe brands.
"We have long stated our intention to pursue new avenues of growth in jeanswear, particularly in the women's category, and the addition of these two well-known brands offers a variety of opportunities for VF both domestically and internationally," concluded Mr. McDonald.
"These transactions will provide the company with much needed capital and allow us to move forward as a quality manufacturer for private label customers utilizing our state-of-the-art facilities in Mexico," said Daniel Rubin, co-chairman and chief executive officer of Chic by H.I.S, Inc.
With $5.6 billion in sales, VF Corporation is the world's largest apparel company and a leader in jeanswear, intimate apparel, workwear, knitwear, playwear, daypacks and swimwear. Its principal brands include Lee, Wrangler, Riders, Rustler, Vanity Fair, Vassarette, Bestform, Lily of France, Lee Sport, Healthtex, Jantzen, JanSport and Red Kap. Its international intimate apparel brands include Lou, Bolero, Variance, Carina, Belcor, Gemma and Intima Cherry. VF Corporation's press releases, annual report and other information can be accessed through the Company's home page on the World Wide Web, http://www.vfc.com.
ots Original Text Service: VF Corporation Internet: http://www.newsaktuell.de
Contact: Cindy Knoebel, Director, Investor Relations & Corporate Communications of VF, 336-547-6189, or 212-765-4215; or Stephen Goldstein, CFO of Chic by H.I.S, Inc., 212-302-6400, ext. 210
Company News On-Call: http://www.prnewswire.com/comp/939350.html or fax, 800-758-5804, ext. 939350
Web site: http://www.vfc.comOriginal-Content von: VF Corporation, übermittelt durch news aktuell