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
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.com Original-Content von: VF Corporation, übermittelt durch news aktuell