Marchpole to extend license agreements with Emanuel Ungaro
20 Aug '05
6 min read
Agreement has also been reached for the Company to distribute the Emanuel Ungaro accessories collection subject to terms being finalised with the licensee. The Company has also been given the rights to extend Moda's US market 'Emanuel' diffusion collection into the UK and Ireland territories from the Spring Summer 2007 season, and thereafter into further territories with the approval of Emanuel Ungaro S.A.
This acquisition and broad range of agreements extends the Company's reach into the important US markets, giving the Company an infrastructure with which to develop their European and Far East business, particularly the collections under the Jean-Charles de Castelbajac (“JCC”) brands.
Terms of the acquisition
The aggregate consideration for Moda as amounts to US$5.5 million in cash payable in part on completion which is expected to be effective on 1 January 2006, and the balance on 30 June 2006.
Moda America LLC
Moda America has been the US market licensee for the 'Emanuel by Emanuel Ungaro' collection since 2002 and has successfully developed the market. The Company is headquartered in New York where it has significant showroom space in which to show the collections. For the year ended 31 December 2004, Moda reported net turnover of US$ 17.8 million (£10.0 million) (2003: US$12.2 million, £7.0 million) with a loss before tax of US$ 198,000 (£113,000) (2003: US$1.7 million loss, £971,000). The gross assets of Moda at 31 December 2004 were US$ 6.4 million (£3.7 million) (2003: US$5.0 million, £2.9 million).
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