The Warnaco Group has entered into a definitive agreement to acquire Ocean Pacific Apparel Corp. from Burlingame, California-based Doyle & Boissiere Fund I, LLC, for $40 million in cash and the assumption of $1 million in debt. The agreement also provides for future performance-based payments if certain incremental business targets are achieved. The acquisition, which is subject to regulatory approval and other customary closing conditions, is expected to close during the current quarter. Ocean Pacific is based in Irvine, California. Richard Baker, the architect of OP's recent success, will join Warnaco and remain as President of Ocean Pacific.
Currently, Ocean Pacific operates through a network of licensees worldwide and offers a broad array of apparel and accessories catering to men, women, young men, juniors, and kids under its Op, Ocean Pacific, Op Classics and Seven 2 labels.
“OP represents an important strategic fit for our Company,” commented Joe Gromek, Warnaco's President and CEO. “Its strong brand equity and authentic surf and beach heritage make it a compelling candidate for profitable expansion and will, over time, provide substantial direct opportunities across our core competencies of swimwear, sportswear and intimate apparel. We are equally excited to welcome Dick Baker, a seasoned industry professional, to Warnaco. We share the same vision and commitment to excellence and together we look forward to building upon OP's worldwide presence by leveraging Warnaco's global resources in design, marketing, sourcing and distribution.
Dick Baker, President of Ocean Pacific, commented: “We are very excited to become part of the Warnaco team. We believe OP will benefit greatly from the talent, infrastructure and global reach of their organization. Utilizing Warnaco's platform, we will have the resources and the experience necessary to capitalize on the many opportunities that we all see for our brand in the US and abroad.”
Roger Williams, President of the Warnaco Swimwear Group, commented: “We are delighted by this acquisition. OP is an important franchise in the surf and beach categories and extends Warnaco's stable of strong brands into the California lifestyle, a trend which has gained worldwide importance.”
Ocean Pacific Apparel Corp. was advised by The Sage Group LLC.
