Phoenix Footwear Group Inc a multi-brand footwear, apparel and accessories company, announced that it has closed the sale of its Royal Robbins division and related business assets to Kellwood Company, a leading marketer of apparel and consumer soft goods, for approximately $40 million in cash.
Phoenix Footwear expects to report a net pre-tax gain of approximately $23 million on the sale including transaction costs.
Phoenix Footwear acquired Royal Robbins on October 31, 2003 for a total of $11.7 million. Phoenix Footwear was advised by KSA Capital Advisors Inc on the transaction.
Commenting on the transaction, Jim Riedman, Chairman of Phoenix Footwear Group Inc said, “The successful sale of our Royal Robins division marks an important inflection point in the development of our company. The proceeds from the transaction will allow us to pay down a significant portion of our long-term debt and provide us with a capital base to aggressively pursue our immediate growth initiatives."
"Upon the close of the transaction our bank debt stands at $13.7 million, compared to $56.0 million just 90 days ago. Having tripled our investment in Royal Robbins within a three-year window, underscores that our strategy can create value. We are committed to working towards repeating this performance for the direct benefit of our shareholders.”
Cathy Taylor, Chief Executive Officer of Phoenix Footwear Group Inc said, “During the past several years Phoenix Footwear has built a solid portfolio of brands with considerable growth opportunities. Our largest business unit, Chambers Belt, is enjoying double digit growth, while the Tommy Bahama unit is just beginning to come on line and is seeing momentum build at retail."
marketing@alchempro.com
