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Montreal's Gildan to Acquire Bankrupt Teenage Fashion Icon American Apparel for $66M

Montreal's Gildan to Acquire Bankrupt Teenage Fashion Icon American Apparel for $66M

In August 2016, American Apparel was said to have hired investment bank Houlihan Lockey to explore an exit, as reported by ExitHub at the time. However, by November American Apparel voluntarily filed for Chapter 11 bankruptcy protection once again. The bankruptcy court may require American Apparel to hold an auction for its assets and business under which the proposed acquisition would constitute the initial bid. Consummation of the acquisition would be subject to Gildan being selected as the successful bidder in any such auction and bankruptcy court approval. Gildan will be entitled to a break-up fee and certain expense reimbursements if it does not prevail as the successful bidder at any such auction. The American Apparel brand would represent a complementary addition to Gildan’s portfolio of brands. The acquisition would create revenue growth opportunities by leveraging Gildan’s extensive distribution network in North American and international printwear markets to further increase the brand’s penetration in the faster growing fashion basics segments of these markets. In addition, with American Apparel’s strong heritage as a consumer brand, Gildan said it will evaluate potential wholesale opportunities for leveraging the brand within its Branded Apparel business. Gildan is a leading manufacturer and marketer of quality branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear. The company sells its products under a diversified portfolio of company-owned brands, including the Gildan, Gold Toe, Anvil, Comfort Colors, Alstyle, Secret, Silks, Kushyfoot, Secret Silk, Peds, MediPeds and Therapy Plus brands. Sock products are also distributed through the company’s exclusive U.S. sock license for the Under Armour brand, and a wide array of products is also marketed through a global license for the Mossy Oak brand. The company sells its products through two primary channels of distribution, namely printwear and retail markets. Gildan distributes its products in printwear markets in the U.S., Canada, Europe, Asia-Pacific, and Latin America. In retail markets, the company sells its products to a broad spectrum of retailers primarily in the U.S. and Canada and also manufactures for select leading global athletic and lifestyle consumer brands. Gildan owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean Basin, North America, and Bangladesh, with over 48,000 employees worldwide.]]>

Permira to Acquire German Fashion Retailer Schustermann & Borenstein from Ardian

Permira to Acquire German Fashion Retailer Schustermann & Borenstein from Ardian

Permira, together with Cinven and Mid Europa, recently acquired Poland-based Allegro Group from Naspers Ltd (JSE: NPN.SJ) (LSE: NPSN) for $3.25 billion, as previously reported by ExitHub. The consumer technology industry is a key area of focus for Permira which has significant experience in backing global brands, such as Hugo Boss, Valentino and Dr. Martens, and supporting the expansion of leading global technology companies like Informatica, TeamViewer, P&I and Magento. Wolfgang Pietzsch, Managing Director Mid Cap Buyout at Ardian, added, “We are very happy to have supported Schustermann & Borenstein and its founding families for more than four years. Significant growth has been achieved through a multitude of avenues in the company’s stationary and online business both organically, such as a new store opening in Vienna and the internationalization of the online business, as well as through an acquisition in Switzerland.” The deal, which is subject to regulatory approvals, is expected to close in the fourth quarter of 2016. In the past 30 years, the Permira funds have made over 200 private equity investments in five key sectors: Consumer, Financial Services, Healthcare, Industrials and Technology. Permira employs over 200 people including 130 investment professionals in 14 offices across North America, Europe and Asia. Founded in 1985, and operated under the Schroder Ventures brand until 1997, Permira advises funds with a total committed capital of €31 billion. Ardian, founded in 1996 and led by Dominique Senequier, is an independent private investment company with $60 billion in assets managed or advised in Europe, North America and Asia.]]>

@LVMH Acquires 80% Stake in German Luggage Group @Rimowa for $716M

@LVMH Acquires 80% Stake in German Luggage Group @Rimowa for $716M

maison of the LVMH Group, and Alexandre Arnault will be appointed co-CEO of Rimowa. Rimowa has become one of the quintessential houses for innovative, high-quality luggage over the course of the twentieth century. The business has built its reputation designing lightweight and easy to use luggage and Rimowa suitcases today serve as the industry benchmark for German quality. Rimowa products are now distributed in 65 countries, through nearly 150 stores via licensees and a network of specialized partners, with a turnover expected to exceed 400 million euros at the end of 2016. Rimowa, with 3,000 employees worldwide, provides integrated design and product development in Germany along with the majority of manufacturing, combining artisanal craftsmanship with precision technology. “Over the past two years I have had the opportunity to establish close ties with the Arnault family, and in particular with Alexandre,” said Dieter Morszeck. “Alexandre and I have discussed at length the attractive development prospects available to us and the common values that we share. I am delighted that he is joining Rimowa and I have full confidence in his ability to accelerate the development of the business by my side.” “Rimowa is a superb business which I have followed as a loyal customer for many years. Rimowa has revolutionized the luggage industry for over a century, its suitcases are renowned for their unique performance, quality and design. I am honored to join Rimowa and to be working alongside Dieter,” said Alexandre Arnault. “Rimowa is a brand with a unique heritage. We share with Dieter Morszeck the same passion for innovation and a common desire to offer very high-quality products derived from a European tradition of craftsmanship. What’s more, it brings me great pleasure that Rimowa will be the first German house to join the LVMH Group. Germany is recognized all over the world for the vitality of its family businesses and for the quality of their products,” added LVMH chairman and chief executive Bernard Arnault. Since its creation by Paul Morszeck, innovation has been at the heart of Rimowa’s strategy. In 1937, his son Richard launched the first aluminum suitcase available on the market. The aluminum structure comprising parallel grooves makes the luggage instantly recognizable and has played its part in building the reputation of Rimowa among a sophisticated international clientele. His son Dieter designed the first waterproof metal case in 1976, since which time Rimowa suitcases have become the travelling companion of choice for the greatest filmmakers, photographers and journalists. Rimowa revolutionized the industry when it launched the first polycarbonate suitcase in 2000. A patented system of ball bearings ensures optimum stability. Since 2014, Rimowa has also been developing its “Bossa Nova” range which combines lightweight polycarbonate with the elegance of leather. This suitcase is a tribute to the English artist and botanist Margaret Mee who devoted her life to painting and protecting plants from the Amazon. Rimowa donates a portion of its sales to the Association Saúde e Alegria which supports social projects in the Amazon. More recently, in partnership with Lufthansa, the company launched the Rimowa Electronic Tag. This innovative feature simplifies baggage check-in by matching, with the use of a smartphone, the boarding card with a bluetooth electronic tag integrated only within Rimowa suitcases. For over 60 years, Rimowa suitcases have been inspired by the remarkable story of commercial aviation and the fuselage of the first metallic plane, the Junkers F-13. Thanks to the financial support of Rimowa, a seven year project made it possible to reconstruct this legendary aircraft. The inaugural flight took place on September 15, 2016, nearly a century after its first commercial use in 1919. This revival embodies the exceptional heritage of the house. Photo (L-R): Alexandre Arnault of LVMH, Dieter Morszeck, Chairman of Rimowa, and Bernard Arnault, Chairman & CEO of LVMH.]]>