Hartmarx to Acquire Exclusively Misook for $30 Million
The transaction will be in cash and is subject to post-closing adjustments, and additional money may be paid if specified earnings levels are achieved over a five-year period. Hartmarx sells its clothes in department stores and specialty stores as well as through a catalog.
Hartmarx president/CEO Homi B. Patel said that Misook is expected to contribute $35 million in sales and that Hartmarx's annualized women's segments revenues will exceed $100 million.
"The brand also has an exceptionally loyal following among its core consumers and we see significant long-term opportunities for high-quality line extensions, licensing and international sales," Patel said in a statement.
Misook Doolittle, Misook's founder and designer, has agreed to stay on as president under a five-year agreement. Patel also said Misook will continue to operate as a separate operating unit of Hartmarx. The deal is expected to close in July.
Hartmarx produces and markets business, casual and golf apparel under its own brands, including Hart Schaffner Marx, Hickey-Freeman, Palm Beach, Coppley, Cambridge, Keithmoor, Racquet Club, Naturalife, Pusser's of the West Indies, Royal, Brannoch, Riserva, Sansabelt, Barrie Pace and Hawksley & Wight.
Kurt Salmon Associates Capital Advisors Inc. acted as Misook's financial adviser in the transaction.