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USA:Cygne Designs & Commerce Clothing Company signs
LOI for denim clothing supply business |
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2005-5-23
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Leading private label women''s career & casual apparel manufacturer Cygne Designs Inc. announced it has signed a non-binding Letter of Intent to acquire the branded and private label denim clothing supply business of Commerce Clothing Company LLC, a privately-held company principally owned by Hubert Guez.
During 2004, Commerce Clothing re-entered the market after being dormant for several years, and is involved in the design, manufacture and sale of denim clothing. Commerce Clothing had unaudited net sales of approximately $17.26 million for the six months ended December 31, 2004 and approximately $13.4 million for the first quarter of 2005, and anticipates that it will be profitable in both periods.
The proposed purchase price would be 12 million shares of Cygne common stock and an eight-year 4.70% per annum promissory note in an amount of $47.5 million. In addition, Cygne would enter into a supply agreement with a company controlled by Mr. Guez to manufacture denim products to be sold by Cygne. The terms of the acquisition set forth in the Letter of Intent could change materially. In addition, there can be no assurance that the transaction will be consummated.
Cygne Designs Inc is a manufacturer of private label women''s career and casual apparel with sales to retailers and wholesalers located in the United States. |
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