The Jones Group Inc. (NYSE: JNY; the "Company" and "Jones")
today confirmed that it is in discussions with Delta Galil
Industries Ltd. (DELT/Tel Aviv Stock Exchange, DELTY.PK/OTCQX),
the global manufacturer and marketer of branded and private
label apparel products for men, women and children, regarding
the potential sale of Jones' Jeanswear division for an estimated
aggregate amount between $350 and $400
million, which would be subject to change depending upon
the level of net working capital and additional adjustments.
Earlier today, in compliance with Israeli law and in response to
Israeli media speculation regarding a potential transaction,
Delta Galil issued a press
release confirming discussions with Jones.
The Company expects that discussions with
Delta Galil will be concluded or
terminated within a month. The Jones Group notes that no
agreement has been reached and there can be no assurances that
any transaction will result from these discussions.
If a transaction were to be consummated, Jones currently
contemplates using a substantial portion of the net proceeds
from the transaction to conduct share repurchases. No definitive
decisions have been reached regarding the use of proceeds from a
potential transaction, including the terms or timing of any such
Jones does not intend to make any additional comments
regarding this matter unless and until a formal agreement has
been reached or discussions have been terminated.
About The Jones Group Inc.
The Jones Group Inc.
is a leading global designer, marketer and wholesaler of over 35
brands with best-in-class product expertise across five
divisions: apparel, footwear, jeanswear, jewelry and handbags.
The Jones Group has a reputation for innovation, excellence in
product quality and value, operational execution and talent. The
Company also markets directly to consumers through branded
specialty retail and outlet stores and through its e-commerce
The Company's internationally recognized brands and licensing
agreements (L) include: Nine West, Jones New York,
Rachel Roy (L),
Robert Rodriguez, Robbi & Nikki,
Stuart Weitzman, B Brian Atwood
(L), KG by Kurt Geiger, Boutique
9, Easy Spirit, Carvela, Gloria
Vanderbilt, l.e.i., Bandolino,
Enzo Angiolini, Nine & Co., GLO, Joan & David, Miss KG,
Andrew Marc/Marc Moto (L),
Kasper, Energie, Evan-Picone, Le Suit,
Mootsies Tootsies, Grane, Erika, Napier,
Jessica Simpson (L), Dockers (L), Sam & Libby, Givenchy
(L), Judith Jack,
Albert Nipon and Pappagallo.