SHERMAN OAKS, Calif.--Cherokee Inc. (NASDAQ:CHKE), a global marketer of style-focused
lifestyle brands, announced today that it has acquired the worldwide
Tony Hawk® and Hawk® signature apparel brands from Quiksilver, Inc. for an all-cash purchase price of $19 million. The
acquisition closed on January 10, 2014.
Tony Hawk, the most dominant athlete in skateboarding history, is the
founder of Tony Hawk clothing which was originally sold to Quiksilver,
Inc. in 2000. The brand was, and will continue to be, exclusively
licensed in the United States to Kohl’s Corporation with Tony Hawk
clothing and accessories sold in 1,158 Kohl’s Department Stores and
online.
Hawk was ranked the number-one vertical ramp skateboarder in the world
every year from 1984 to 1996 and is best known for completing the first
documented 900-degree aerial spin at the 1999 X Games. Over the past 12
years, the Tony Hawk Foundation has donated over $4.6 million to help
create 537 skateparks throughout the U.S. Hawk continues to be the most
prominent athlete bridging action sports with the consumer market,
solidifying his legacy as the “Original Innovator” promoting “board”
culture worldwide.
Tony Hawk commented on the recent acquisition, "I’ve been working
closely with the Cherokee team and will continue to be actively involved
in the brand’s development, connecting with fans and action sports
enthusiasts worldwide. I am very excited to be working with Cherokee and
to continue the line’s successful relationship with Kohl’s while
expanding our relationships globally."
“The acquisition of the Tony Hawk signature apparel brand is a great way
to start the New Year for Cherokee,” Henry Stupp, Cherokee’s Chief
Executive Officer, noted. “This is Cherokee’s third strategic
acquisition in just over a year. We identified the Tony Hawk brand for a
variety of reasons including the opportunity to further expand into the
department store and specialty channels of distribution globally. We
expect the transaction to be immediately accretive and look forward to
continuing to execute our long-term growth plan that seeks additional
new markets for our existing brands; expands our product offerings with
our current partners; and identifies additional lifestyle brands to add
to our portfolio.”
Mr. Stupp continued, “The Tony Hawk brand fits perfectly into our
strategy for the globalization of brands much like we have done for our
namesake Cherokee brand and most recently with Liz Lange Maternity.
We’d
like to welcome Tony and his over 5 million Facebook fans (https://www.facebook.com/TonyHawk),
his more than 3.5 million Twitter followers (https://twitter.com/tonyhawk),
his YouTube fans with over 20 million views (http://www.youtube.com/tonyhawk)
and his more than 1 million Instagram followers (http://instagram.com/tonyhawk)
to the Cherokee family of brands. We look forward to much success
together.”
Financo acted as exclusive financial advisor to Cherokee Inc. in the
transaction.
On January 10, 2014 in connection with the acquisition, Cherokee and
JPMorgan Chase Bank entered into a credit agreement to finance the
purchase of the Tony Hawk® and Hawk® signature apparel brands. The
Company intends to file a Current Report on Form 8-K with the Securities
and Exchange Commission with additional information regarding the terms
of the acquisition, the agreement with Kohl’s and the credit agreement.
About Cherokee Inc.
Cherokee Inc. is a global marketer and manager of a portfolio of Fashion
and Lifestyle brands including Cherokee®, Carole Little®, Liz
Lange® and Sideout®, in multiple consumer
product categories and sectors around the world. The Company has license
agreements with premier retailers and manufacturers covering over 40
countries around the world including Target Stores (U.S.
and Canada), Tesco (U.K., Ireland and certain Central European
countries), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South
Africa), Falabella (Chile, Peru and Colombia), Arvind Mills (India and
certain Middle Eastern countries), Shufersal LTD. (Israel), Comercial
Mexicana (Mexico), Eroski (Spain), Nishimatsuya
(Japan), Magnit (Russia), Landmark Group’s Max Stores (certain Middle
East and North Africa countries), and the TJX Companies
(U.S., Canada and Europe).
Statements included within this news release may contain
forward-looking statements for purposes of the safe harbor provided by
the Private Securities Litigation Reform Act of 1995. When used,
the words “anticipates,” “believes,” “expects,”“may,” “should,” and
similar expressions are intended to identify such forward-looking
statements. Forward-looking statements included in this
press release (including, without limitation, express or implied
statements regarding the financial impact of the acquisition of the Hawk
brand and related assets) involve known and unknown risk and
uncertainties that may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such risks and uncertainties,
include, but are not limited to, the effect of
global economic conditions, the financial condition of the apparel and
retail industry, adverse changes in licensee or consumer acceptance of
products bearing the Company’s brands, the ability and/or commitment of
the Company’s licensees to design, manufacture and market Cherokee, Liz
Lange, Completely Me, Tony Hawk, Sideout and Carole Little branded
products, the Company’s dependence on Target for most of the Company’s
revenues and the Company’s dependence on its key management personnel. The
risks included here are not exhaustive. A further list and description
of these risks, uncertainties and other matters can be found in the
Company’s Annual Report on Form 10-K/A for Fiscal Year 2013, and in its
periodic reports on Forms 10-Q and 8-K. Given these risks and
uncertainties, you should not place undue reliance on forward-looking
statements as a prediction of actual results. The Company disclaims any
intent or obligation to update any of the forward-looking statements
contained herein to reflect future events and developments.
Contacts
Cherokee Inc./ Jason Boling, 818-908-9868 / CFO
By press release
More news about Quiksilver ? Use the search engine at the right top.
Aucun commentaire:
Enregistrer un commentaire