This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Joe’s Jeans Completes Acquisition Of Hudson Clothing

Joe’s Jeans Inc. (NASDAQ:JOEZ) (“Joe’s Jeans”) announced it has completed the acquisition of Hudson Clothing Holdings, Inc., (“Hudson”), a leading global designer and marketer of women’s and men’s premium branded denim apparel.

“We are very pleased to have completed the acquisition of Hudson and we look forward to capitalizing on the numerous opportunities created by this partnership,” stated Marc Crossman, President and CEO of Joe’s Jeans. “The combination of our two organizations, which doubles the size of our business, significantly enhances our prospects for growth across wholesale, retail and e-commerce, both domestically and overseas. The combination also provides operating and supply chain benefits that should drive meaningful cost savings in the future and underscores our positive outlook.”

Hudson’s CEO, Peter Kim, added, “We are excited about this merger. We could not have thought of a better partner to join with to help us achieve a shared strategic vision of being the leader in the premium denim market and impacting it in a significant way.” Mr. Kim continued, “We are committed for the long haul and are eager to cross share our expertise. We expect the combined company to be at the forefront of the industry.”

Many opportunities lie ahead as a result of this merger. While it is of paramount importance to preserve the distinct and separate DNA of each brand, the combined company hopes to realize significant savings across all components of making a jean. The magnitude of the combined company is expected to provide both brands with improved purchasing authority with current and future vendors. Both brands are eager to seize these opportunities as they will jointly benefit not only from operational efficiencies, but also by sharing expertise in growth areas, such as men’s and kid’s apparel, e-commerce, international and retail.

The total purchase price for Hudson was $97.6 million. Transaction financing consisted of a $50 million revolving credit facility with CIT Trade Finance as agent and a $60 million senior term loan provided by affiliates of Garrison Investment Group as agent. CIT Capital Markets acted as lead arranger for the transaction financing. CIT Trade Finance will also provide factoring services to the combined companies.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs