Joe’s Jeans Inc. (NASDAQ: JOEZ) (“Joe’s Jeans”) and Hudson Clothing Holdings, Inc., (“Hudson”), today announced that they have signed a definitive stock purchase agreement under which Joe’s Jeans will acquire privately-held Hudson.
The total purchase price for Hudson will be approximately $97.6 million, subject to certain adjustments, and will be payable in cash and convertible notes issued by Joe’s Jeans.
Marc Crossman, President and Chief Executive Officer of Joe’s Jeans, stated, “We are extremely excited about joining forces with Hudson Jeans. Once the acquisition is complete, we expect to nearly double the size of our business, meaningfully increase our international and e-commerce penetration, and enhance our overall prospects for growth. Paramount to the combination is preserving the DNA of each existing company by retaining its employees and separate facilities. This deal represents a landmark event in the history of our company and we are committed to capitalizing on the many opportunities this transformative transaction will create in marketplace.” Crossman continued, “We believe by leveraging our sourcing capabilities to realize cost savings across all three components of making a jean, from fabric, trim to labor, will significantly reduce our input costs while we drive top line sales by building on the strengths of each company’s distribution.”
Based in Los Angeles, California, and founded by Peter Kim in 2002, Hudson is a leading, global designer and marketer of women’s and men’s premium branded denim apparel. Kim, who will remain Chief Executive Officer of Hudson, will become a member of the Joe’s Jeans Board of Directors. Hudson’s products include a core denim line as well as non-denim tops and bottoms. As a global fashion brand, Hudson continuously innovates within its product line, introducing new styles, washes, cuts, fabrics and colors, all designed under the premise of one superior fit. Hudson’s products are available at department stores and selective boutique and specialty stores around the country, as well as premier retailers in over 30 countries around the world.