Perry Ellis International has signed a definitive asset purchase agreement to acquire primarily all of the worldwide intellectual property, including the Gotcha and GirlStar trademarks and the intellectual property license agreements, of the leading California lifestyle company Gotcha International. The cash transaction is expected to close in January 2006, subject to satisfaction of closing conditions set forth in the asset purchase agreement.
Gotcha is an internationally recognized surf wear brand produced through a global network of licensees. Gotcha is sold through surf, specialty, and department stores in 20 countries across five continents.
“The Gotcha acquisition gives our company another strong youth lifestyle brand,” said George Feldenkreis, chairman and CEO of Perry Ellis International. “It also creates a number of opportunities as we take over development of the brand for Spring 2007 delivery. Gotcha will benefit from Perry Ellis' vast sourcing, design and marketing resources, as well as the expertise and infrastructure we have gained through Original Penguin and Redsand. In addition, our international licensing expertise will continue to expand Gotcha's worldwide appeal.”
Donald S. Grier, president of Gotcha International, said: “Perry Ellis has demonstrated its ability to successfully build and acquire strong lifestyle brands, at the same time ensuring that each brand's unique culture remains intact. We're enthusiastic about the prospects for continued growth in all our markets and categories.”
The company indicated that the transaction will be slightly accretive to Perry Ellis' fiscal 2007 revenue and earnings with further benefits expected in fiscal 2008 and beyond.
