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LINCOLN, R.I., Sept. 6, 2013 (GLOBE NEWSWIRE) --
A.T. Cross Company (Nasdaq:ATX) today announced that it has completed its previously announced sale of its Cross Accessory Division (the "Division") to a newly-formed affiliate of Clarion Capital Partners, LLC (the "Buyer") for $60 million in cash. As previously announced, the Buyer assumed substantially all the liabilities associated with the Division, excluding the U.S. defined benefit pension plan and certain known pre-closing environmental matters.
Taking into account certain seasonal working capital adjustments and taxes associated with the sale, A.T. Cross received proceeds of approximately $54 million.
"With the completion of the sale of the Cross Accessory Division, we are very excited to enter our next phase as a growth company focused on the continued expansion of our premium sports sunglass business. Since our 2003 acquisition of Costa and subsequent purchase of Native Eyewear in 2008, revenue from our sunglass business has grown more than tenfold to nearly $100 million. In the coming years through our expertise and capital, we will bring Costa and Native to the many more consumers anxious to experience the authenticity and technology that Costa and Native deliver," said David G. Whalen, President and Chief Executive Officer of A.T. Cross.
Mr. Whalen continued, "I would like to thank all of the employees of the Cross Accessory Division for their hard work and dedication. Cross is a terrific, global brand and it has such a great history and future because of the people who have worked so hard to build it."
The Company is currently in the process of changing its name to Costa Inc. Its NASDAQ symbol will remain ATX. A formal announcement of the new name, including a new logo and website will be made later this month.
"We are thankful to the employees of the Cross Accessory Division and the newly named Costa Inc. in working so diligently on this successful transition," commented Eric Kogan, a partner of Clarion Capital Partners. "We are now eager to turn our attention and resources to building the Division as an independent company, capitalizing on the many opportunities available to this exciting global brand."