Oxford Industries Inc. today said it will acquire United Kingdom-based clothing and footwear maker Ben Sherman Ltd for $146 million in cash, a deal Oxford expects to add 20 cents to 25 cents to fiscal 2005 earnings.
Oxford, which makes clothes under the Tommy Hilfiger and Nautica brands, said it will finance the acquisition using a secured revolving credit line.
Shares of Oxford surged on the announcement, up 23 percent to $44.20 on volume of 309,100 during early-morning trading on the New York Stock Exchange.
The company purchased Ben Sherman from European venture-capital firm 3i Group, and said it anticipates an additional $150 million in revenue this year from Ben Sherman's distribution in North America, Europe, Australia and Asia. Oxford is anticipating revenues of $1.1 billion in fiscal 2004.
Oxford also said it expects to exceed fourth-quarter earnings estimates of 85 cents to 88 cents per share after stronger-than-anticipated financial results during the period. Analysts on average put Oxford in the range of 87 cents to 88 cents per share.
