Oxford IndustriesShares of Oxford Industries ( OXM) jumped late after the Atlanta-based fashion apparel maker announced its acquisition of Sugartown Worldwide Inc., which owns the women's brand Lilly Pulitzer. Financial terms of the deal weren't disclosed in a press release announcing the transaction but Oxford said in a Form 8-K filing with the Securities and Exchange Commission that the all-cash acquisition carried a purchase price of $60 million, and that the deal includes an earnout agreement allowing for the payment of an additional $20 million in cash over the next four years if the acquired assets achieve certain performance targets.
Oxford, whose other brands include Tommy Bahama and Ben Sherman, also said it expects the Lilly Pulitzer business to contribute more than $70 million in sales in fiscal 2011, adding earnings of roughly 40 cents a share to its results. The stock was last quoted at $24.35, up 9.8%, on volume of around 54,000, according to Nasdaq.com. Based on a regular session close at $22.17, the shares had gained 5.5% year-to-date.