Polo Ralph Lauren Corporation today announced that it has signed a definitive agreement to purchase Ralph Lauren Footwear Co., Inc., its global licensee for footwear for men, women and children.
“We are very excited about the development of a global luxury accessories business and this acquisition moves us closer to that goal. We are assembling the right businesses and people to build our accessories into an important part of our future,” said Ralph Lauren, Chairman and Chief Executive Officer.
“We are pleased to acquire our footwear business as we continue to execute our long-term strategy of taking more direct control of our valuable brands. We believe the development and refinement of our global footwear business is an excellent opportunity for growth at Polo Ralph Lauren,” said Roger Farah, President and Chief Operating Officer. “We have been making investments in design and infrastructure to support this strategic initiative. The acquisition of our footwear licensee will be a key element of a successful accessories strategy.”
The purchase of Ralph Lauren Footwear is a cash transaction of approximately $110 million, subject to closing adjustments. Consummation of the transaction is subject to review under the provisions of the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The transaction is expected to be marginally dilutive to Polo Ralph Lauren’s earnings in Fiscal 2006, taking into consideration purchase price allocation and the elimination of licensing royalties. The transaction is expected to close by the end of the second quarter of 2005.
Ralph Lauren Footwear Co, Inc. is a wholly owned subsidiary of Reebok International Ltd. Ralph Lauren Footwear has been a Polo Ralph Lauren licensee since 1996, holding exclusive licenses to design, manufacture, and sell men’s, women’s and children’s footwear.
UBS Investment Bank acted as the exclusive financial advisor to Polo Ralph Lauren with respect to this transaction.
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 37 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 by Ralph Lauren”, “Ralph Lauren Purple Label”, “Ralph Lauren”, “Black Label”, “Blue Label”, “Lauren by Ralph Lauren”, “Polo Jeans Co.”, “RRL”, “RLX”, “Rugby”, “RL Childrenswear”, “Chaps”, and “Club Monaco” among others, constitute one of the world’s most widely recognized families of consumer brands. For more information, go to http://investor.polo.com.
