Tiffany & Co reported that one of its subsidiaries has entered into an agreement with NXP Corporation for NXP to purchase 100% of the stock of Little Switzerland Inc.
NXP operates retail stores under the brands "Jewels" and "Azura by Jewels" in the Caribbean offering branded jewelry and watches.
The loss related to this transaction is expected to reduce Tiffany's after-tax earnings in the second quarter ended July 31, 2007 by approximately $0.15 - $0.18 per diluted share. The Company expects to complete the transaction on or about August 31, 2007.
Earlier this year, the Company had disclosed that it had hired Evercore Group L.L.C. to assist management in exploring various strategic alternatives related to Little Switzerland.
The Company expects to report its second quarter results on August 30, 2007. At that time, the Company will discuss the post-sale beneficial effect of this transaction on its future financial results.
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