Aris Industries, Inc. announced Wednesday it has signed a definitive trademark purchase agreement with Global Brand Holdings, LLC (“Global”) providing for the sale of the XOXO, XOXO IN AMERICA AND ABROAD, FRAGILE and LOLA trademarks and related assets for a total of $43 million in cash.
Under the terms of the trademark purchase agreement, Global has agreed to purchase the trade name and service mark XOXO and the trademarks XOXO, XOXO IN AMERICA AND ABROAD, LOLA and FRAGILE along with certain related assets and accompanying goodwill for $43 million in cash payable upon the closing of the transaction. Aris is using the proceeds of the transaction to repay indebtedness.
Arnold Simon, Chairman and Chief Executive Officer of Aris said, “Aris will continue as a licensing business with its remaining brands and will reduce its debt and overhead substantially. Aris will continue to license its remaining brands for additional revenues.”
The trademark purchase agreement has been approved by the board of directors of Aris and the board of managers of Global. The transaction is subject to customary conditions, including the approval of Aris shareholders, which Aris expects to obtain in the second quarter of 2003.
Aris also announced that Arnold Simon and an entity controlled by him, which collectively beneficially own approximately 39% of the outstanding common stock of Aris, have entered into a voting agreement with Global providing that such shares shall be voted in favor of the transaction at a special meeting of shareholders called for that purpose.
