G-III Apparel Looks to Broaden M&A Collection

NEW YORK (The Deal) -- G-III Apparel 

Executives at G-III Apparel Group (GIII), which markets apparel brands such as Calvin Klein, Tommy Hilfiger and Ivanka Trump, are actively hunting for acquisitions. At a recent conference in New York, COO Wayne Millerand CFO Neal Nackman said the company is focusing on women's wear businesses with sales between $100 million to $1 billion. The "sweet spot" for G-III would be sales of around $500 million, and while women's apparel would be the most attractive the company could consider other categories, Miller and Nackman said.

And G-III has the balance sheet to make deals. With about $200 million in annual Ebitda, the company could borrow up to four times that amount, or about $800 million, and still remain investment grade, according to an industry source. G-III listed no debt and nearly $86 million in cash in a 10-Q filed with the Securities and Exchange Commission on June 5.

While G-III declined to comment on specific targets, the industry source said the potential acquirer was more likely to target wholesale brands that would fit well with the company's other businesses. The company has a history of adding brands, more recently French swimwear labelVilebrequinin a 2012 deal worth more than $100 million. The company then bought men's apparel and footwear brand G.H. Bass & Co. from PVH Corp.  (PVH) for $50 million in 2013. -Richard Collings


RPC Group 

U.K.-based plastic packaging design company RPC Group may continue to be an active buyer. The company will likely look outside of Europe at other regions including in North America in the second half of this year, said Kevin Fogarty, institutional research director at UK investment bank Panmure Gordon & Co. RPC owns subsidiaries in 14 countries across the globe, including in the U.S., China, Belgium, France and Germany.

The company's acquisitions this year so far include Norway-based Promens Group, Netherlands-based PET Power B.V. and Belgium's Innocan B.V. For its fiscal 2015 year ended March 31, the company grew sales by 17% to about £1.2 billion ($1.9 billion) and adjusted Ebitda by 28% to £187.6 million year over year, largely a result of a widened customer base brought by overseas acquisitions.

"The integration of Promens is progressing well and the Group continues to explore further opportunities for growth," said Pim Vervaat, RPC's chief executive, in a statement. The company's so-called Vision 2020 plan encompasses both continued organic growth and expansion of its market position through acquisitions. RPC would be interested in rigid plastics packaging businesses that would increase its global market share, particularly in the healthcare or food packaging industries, according to Fogarty. The company's market capitalization is about £1.62 billion.-Dian Zhang

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