Endeavor Acquisition Corp. said it had been advised by American Apparel that the company will post at least $30 million pro-forma EBITDA for the fiscal year ending December 31, 2006. Under the terms of the merger agreement, American Apparel was required to post EBITDA of at least $30 million for the deal to move forward. The merger will provide American Apparel with a capital infusion of up to $120 million and improved bank financing terms to fund store growth.
Endeavor also announced that American Apparel had advised it that same-store sales for American Apparel's fiscal first quarter ended March 31 increased 17%.
American Apparel also projected that adjusted EBITDA will be in the range of $40 million for the current year.
“I am pleased that American Apparel continues to flourish with strong same store sales this quarter,” said American Apparel founder and CEO Dov Charney. “The merger with Endeavor will provide the equity capital necessary to fuel our continued growth and expansion of our operations in several of the most influential metropolitan centers around the world.”
