Cherokee offers to buy Mossimo for $8.50 per share
18 Apr '06
3 min read
Company strong balance sheet will allow us to quickly raise all of the debt we need for that portion of the purchase price at a low cost and on favorable terms, based on current discussions with lenders.
But our shareholders have indicated to us that they want us to continue to return our excess cash to them in the form of dividends, and we intend to continue to do so. We are particularly excited that this strategic combination will create substantial future value for Cherokee and Mossimo shareholders as we further grow the Mossimo brand domestically and expand its presence internationally.
The acquisition is conditioned upon customary governmental and regulatory approvals, and other standard closing conditions.
Advisors
Advisors to Cherokee on the proposed acquisition include Morrison & Foerster LLP, legal counsel and Financo, Inc., financial advisor.
Cherokee Inc, based in Van Nuys, CA, is a marketer, licensor and manager of a variety of brands it owns (Cherokee, Sideout, Carole Little and others) and represents. Currently, Cherokee has licensing agreements in a number of categories, including family apparel, fashion accessories and footwear, as well as home furnishings and recreational products.
Premier clients for the Cherokee brand around the world include Target Stores (U.S.), Tesco (U.K., Ireland and certain other European and Asian Countries), Zellers(Canada), Pic'n Pay (South Africa) and Grupo Aviara (Mexico). Premier clients for Cherokee's Sideout brand include Mervyn's (U.S.) and Shanghai Bolderway (China), and for Cherokee's Carole Little brands include TJX Companies (U.S., Canada and Europe). Other key clients of Cherokee include Hearst Publications and Solera Capital (U.S.).
marketing@alchempro.com
