Jul 11, 2001 – Polo Ralph Lauren Corporation (NYSE: RL) announced today that it has signed a letter of intent to acquire PRL Fashions of Europe SRL, which holds licenses to sell women's Ralph Lauren apparel in Europe, men's and boys' Polo Ralph Lauren apparel in Italy, and men's and women's Polo Jeans Co. collections in Italy.
The purchase is a cash transaction for approximately $22 million and earn-out payments based on achieving profitability targets over the next three years. The acquisition is expected to close in September 2001 and to be accretive to earnings in the first full year of operation.
PRL Fashions of Europe, headquartered in Bologna, Italy, had revenues of approximately $75 million for calendar year 2000 and has been a Polo Ralph Lauren licensee since 1984.
“I believe the addition of our Italian business is another important building block in our disciplined strategy of growing our business worldwide both thoughtfully and profitably. Under the direction of Lance Isham, our European business continues to exceed expectations. With the acquisition of PRL Fashions of Europe, Lance will be able to accelerate European expansion,” said Ralph Lauren, Chairman and Chief Executive Officer.
“The acquisition of our Italian licensee gives us direct ownership of our entire European business and completes our strategy of gaining direct control of all of our brands' growth throughout Europe,” said Roger Farah, President and Chief Operating Officer.
“By taking direct control of our merchandising and distribution of our women's collection in Europe and our Polo brands in Italy, we are better positioned to build on this enormous opportunity offered there,” Mr. Farah added.
Polo Ralph Lauren Corporation is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. For more than 30 years, Polo's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. The Company's brand names, which include “Polo”, “Polo by Ralph Lauren”, “Polo Sport”, “Ralph Lauren”, “RALPH”, “Lauren”, “Polo Jeans Co.”, “Chaps”, and “Club Monaco” among others, constitute one of the world's most widely recognized families of consumer brands.
Certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Those risks include, among others, risks associated with changes in the competitive marketplace, including the introduction of new products or pricing changes by the Company's competitors, changes in global economic conditions and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: Polo Ralph Lauren
Investor Contact: Nancy S. Murray, 212/813-7862
Media Contact: Jim Abernathy, 212/371-5999