Perry Ellis buys Claiborne brands
American apparel and accessories designer Perry Ellis International is to acquire the C&C California and Laundry by Design brands from New York-based fashion brand Liz Claiborne Inc. for approximately $37 million. The acquisition is expected to close by February 4.
The company plans to combine its C&C California and Laundry operations with the Original Penguin brand to create a new contemporary business platform. Additional annual revenues for 2009 from the two brands are expected to be in the region of $60 million, with revenues expected to display double digit annual growth over the next five years. However, the acquisition will have no impact on 2008 revenues.
The two brands are likely to attract “a very young following," according to chairman and chief executive officer, George Feldenkreis. "The addition of C&C California and Laundry will allow us to aggressively pursue women's apparel in the contemporary segment, which is the fastest growing one of the women's market today,” he adds.
Based in Los Angeles, C&C California sells various apparel items including t-shirts, dresses and active inspired sportswear. With projected annual revenues of approximately $23 million in 2007, the brand has achieved double digit growth since it was acquired by Liz Claiborne in 2005.
Laundry has offices and showrooms both in New York and Los Angeles. The dress line achieved approximately $30 million in annual revenues in 2007and is sold at Saks, Bloomingdale's, Nordstrom and Neiman Marcus.
