Jones Apparel Group, Inc. Announces Acquisition of Robert Rodriguez, Contemporary Fashion Brand
05 February 2010 - 12:30AM
PR Newswire (US)
NEW YORK, Feb. 4 /PRNewswire-FirstCall/ -- Jones Apparel Group,
Inc. ("Jones") (NYSE:JNY) today announced that it has acquired Moda
Nicola International, LLC ("MNI"), owner of the Robert Rodriguez
Collection, a privately held designer, marketer and wholesaler of
women's contemporary eveningwear and sportswear. MNI generated net
revenues of approximately $17 million for the year ended December
31, 2009. The transaction is valued at approximately $28 million.
Under the terms of the agreement, Jones made initial cash payments
to the selling members of MNI, who are entitled to receive future
cash payments upon achievement of certain financial targets set
within the agreement. The transaction is expected to be accretive
to earnings, prior to any required purchase accounting adjustments
and closing costs. Wesley Card, President and Chief Executive
Officer, Jones Apparel Group, said: "Robert Rodriguez is a highly
talented and experienced designer and we are excited to welcome
Robert and his associates into our family of brands. We believe
that now is the right time to be making an acquisition as our core
brands and organization are strong, and we are well-positioned for
a new phase of growth. Robert Rodriguez will increase our presence
in the contemporary market." Mr. Card added: "Recognized for its
unique designs, commitment to elegant fashion and attention to
quality and fit, the Robert Rodriguez collection has gained
attention from fashion insiders, including buyers, trendsetters and
celebrities. We see great potential in this brand and look forward
to working with Robert and his team." Robert Rodriguez, founder and
artistic director, said, "I am excited to become part of a dynamic
organization such as Jones and to work together to develop the
brands to their fullest potential." Nicola Guarna, Chief Executive
Officer, Robert Rodriguez, said, "I look forward to joining the
Jones team and to combining the Robert Rodriguez fashion talent
with the Jones execution and performance." Founded in 2003 by
designer Robert Rodriguez and business partner Nicola Guarna, the
Robert Rodriguez collection quickly gained attention from buyers,
celebrities and trendsetters alike for being a feminine, sexy,
contemporary label for women of all ages. The Robert Rodriguez
collection incorporates the principles of haute couture: focusing
on fashion, quality and fit. The collection, which includes Robert
Rodriguez, Robert Rodriguez Black Label and Robbi and Nikki, is
currently sold at luxury retailers in the U.S. and Europe, such as
Bergdorf Goodman, Neiman Marcus, Nordstrom, Saks Fifth Avenue,
Bloomingdale's, Fred Segal, Intermix, Shopbop, Holt Renfrew,
Harrods, and Lane Crawford, as well as at numerous high-end
boutiques nationwide. About Jones Apparel Group, Inc. Jones Apparel
Group, Inc. (http://www.jonesapparel.com/) is a leading designer,
marketer and wholesaler of branded apparel, footwear and
accessories. The Company also markets directly to consumers through
its chain of specialty retail and value-based stores and through
its e-commerce web sites. The Company's nationally recognized
brands include Jones New York, Nine West, Anne Klein, Gloria
Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan-Picone, l.e.i.,
Energie, Enzo Angiolini, Joan & David, Mootsies Tootsies, Sam
& Libby, Napier, Judith Jack, Albert Nipon and Le Suit. The
Company also markets costume jewelry under the Givenchy brand
licensed from Givenchy Corporation, women's footwear under the
Dockers® and Dockers® Women brands and infants', toddlers' and
boys' footwear (excluding girls' footwear) under the Dockers® and
Dockers® Premium brands, licensed from Levi Strauss & Co.,
apparel and accessories under the Rachel Roy brand licensed from
Rachel Roy IP Company, LLC, and Jessica Simpson jeanswear licensed
from VCJS, LLC. Each brand is differentiated by its own distinctive
styling, pricing strategy, distribution channel and target
consumer. The Company contracts for the manufacture of its products
through a worldwide network of quality manufacturers. The Company
has capitalized on its nationally known brand names by entering
into various licenses for several of its trademarks, including
Jones New York, Anne Klein New York, Nine West, Gloria Vanderbilt,
l.e.i. and Evan-Picone, with select manufacturers of women's and
men's products which the Company does not manufacture. For more
than 30 years, the Company has built a reputation for excellence in
product quality and value, and in operational execution. Forward
Looking Statements Certain statements contained herein are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements regarding
the Company's expected financial position, business and financing
plans are forward-looking statements. The words "believes,"
"expects," "plans," "intends," "anticipates" and similar
expressions identify forward-looking statements. Forward-looking
statements also include representations of the Company's
expectations or beliefs concerning future events that involve risks
and uncertainties, including: -- those associated with the effect
of national, regional and international economic conditions; --
lowered levels of consumer spending resulting from a general
economic downturn or lower levels of consumer confidence; -- the
tightening of the credit markets and our ability to obtain credit
on satisfactory terms; -- given the uncertain economic environment,
the possible unwillingness of committed lenders to meet their
obligations to lend to borrowers, in general; -- the performance of
the Company's products within the prevailing retail environment; --
customer acceptance of both new designs and newly-introduced
product lines; -- the Company's reliance on a few department store
groups for large portions of the Company's business; -- the
Company's ability to identify acquisition candidates and, in a
competitive environment for such acquisitions, acquire such
businesses on reasonable financial and other terms; -- the
integration of the organizations and operations of any acquired
businesses into the Company's existing organization and operations;
-- consolidation of the Company's retail customers; -- financial
difficulties encountered by the Company's customers; -- the effects
of vigorous competition in the markets in which the Company
operates; -- the Company's ability to attract and retain qualified
executives and other key personnel; -- the Company's reliance on
independent foreign manufacturers; -- changes in the costs of raw
materials, labor, advertising and transportation; -- the general
inability to obtain higher wholesale prices for the Company's
products that the Company has experienced for many years; -- the
uncertainties of sourcing associated with an environment in which
general quota has expired on apparel products but litigation and
political activity seeking to re-impose quotas have been initiated;
-- the Company's ability to successfully implement new operational
and financial computer systems; and -- the Company's ability to
secure and protect trademarks and other intellectual property
rights. A further description of these risks and uncertainties and
other important factors that could cause actual results to differ
materially from the Company's expectations can be found in the
Company's Annual Report on Form 10-K for the year ended December
31, 2008, including, but not limited to, the Statement Regarding
Forward-Looking Disclosure and Item 1A-Risk Factors therein, and in
the Company's other filings with the Securities and Exchange
Commission. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, such
expectations may prove to be incorrect. The Company does not
undertake to publicly update or revise its forward-looking
statements as a result of new information, future events or
otherwise. Investor Contact: John T. McClain, Chief Financial
Officer Jones Apparel Group (212) 642-3860 Media Contacts: Joele
Frank and Jennifer Friedman Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449 DATASOURCE: Jones Apparel Group, Inc. CONTACT:
Investor Contact: John T. McClain, Chief Financial Officer, Jones
Apparel Group, +1-212-642-3860, or Media Contacts: Joele Frank and
Jennifer Friedman, of Joele Frank, Wilkinson Brimmer Katcher,
+1-212-355-4449 Web Site: http://www.jonesapparel.com/
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