Liz Claiborne Inc. Completes Acquisition of ENYCE Holding LLC
Liz Claiborne Inc. (NYSE:LIZ) announced today that it has completed the purchase of all of the equity interest in ENYCE HOLDING LLC ("ENYCE") for a purchase price of approximately $114 million, including the retirement of debt at closing.
Based in New York City, ENYCE is a designer, marketer and wholesaler of fashion forward streetwear for men and women through its ENYCE(R) and Lady ENYCE(R) brands, ENYCE is projected to generate net sales of approximately $95 million in fiscal 2003.
ENYCE sells its products primarily through specialty store chains, better specialty stores and select department stores. Currently, men's products account for approximately 84% of net sales while women's products account for the remaining 16% of net sales. Men's and women's products include a variety of denim-based lifestyle products, outerwear, athletic-inspired apparel, casual tops and knitwear.
Liz Claiborne Inc. designs and markets an extensive range of women's and men's fashion apparel and accessories appropriate to wearing occasions ranging from casual to dressy. The Company also markets fragrances for women and men. Liz Claiborne Inc.'s brands include Axcess, Bora Bora, Claiborne, Crazy Horse, Curve, Dana Buchman, Elisabeth, Ellen Tracy, Emma James, First Issue, J.H. Collectibles, Juicy Couture, Laundry by Shelli Segal, Liz Claiborne, Lucky Brand, Mambo, Marvella, Mexx, Monet, Monet 2, Realities, Sigrid Olsen, Spark, Trifari and Villager. In addition, Liz Claiborne Inc. holds the exclusive, long-term license to produce and sell men's and women's collections of DKNY(R) Jeans and DKNY(R) Active, as well as CITY DKNY(R) better women's sportswear in the Western Hemisphere. The Company also has the exclusive license to produce women's wear under the Kenneth Cole New York, Unlisted and Reaction Kenneth Cole brand names.
Founded in 1996 by Fila USA, ENYCE designs and sells fashion forward streetwear for men and women through its ENYCE(R) and Lady ENYCE(R) brands. Men's and women's products include a variety of denim-based lifestyle products, outerwear, athletic-inspired apparel, casual tops and knitwear. ENYCE sells its products predominantly through specialty store chains, better specialty stores and select department stores in the United States. The Company also has agreements with international distributors in Germany, Canada and Japan.
Statements contained herein that relate to the Company's future performance, including, without limitation, statements with respect to the Company's anticipated results of operations or level of business for 2003 or any other future period, are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include changes in regional, national, and global micro- and macro economic conditions, including the levels of consumer confidence and spending and the levels of customer traffic within department stores, malls and other shopping and selling environments, risks related to retailer and consumer acceptance of the Company's products; risks associated with competition and the marketplace, including the financial condition of and consolidations, restructurings and other ownership changes in, the apparel (and related products) industry and the retail industry, the introduction of new products or pricing changes by the Company's competitors, the Company's ability to effectively remain competitive with respect to product, value and service; risks associated with the Company's dependence on sales to a limited number of large department store customers, including risks related to customer requirements for vendor margin support, and those related to extending credit to customers; the Company's ability to correctly balance the level of its commitments with actual orders; the Company's ability to effectively distribute its product within its targeted markets; risks associated with acquisitions, licensing and the entry into new markets, including risks relating to integration of acquisitions, retaining and motivating key personnel of acquired businesses and achieving projected or satisfactory levels of sales, profits and/or return on investment; risks associated with the possible inability of the Company's unaffiliated manufacturers to manufacture and deliver products in a timely manner, to meet quality standards or to comply with the Company's policies regarding labor practices; risks associated with changes in social, political, economic, legal and other conditions affecting foreign operations, sourcing or international trade, including foreign currency exchange rate fluctuations; risks associated with war, the threat of war and terrorist activities; work stoppages by suppliers or service providers; risks relating to protecting and managing intellectual property; and such other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices as are set forth in our 2002 Annual Report on Form I O-K, including, without limitation, those set forth under the heading "Business-Competition; Certain Risks" and under the heading "Statement Regarding Forward-Looking Statements". The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise
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