The Warnaco Group, Inc. has sold its Anne Cole, Cole of California and Catalina businesses to In Mocean Group, LLC for total consideration of approximately $26 million. The sale is part of a move to focus solely on Speedo and Calvin Klein brands in the swimwear area.
The purchase price was comprised of approximately $21 million in cash and $5 million relating to raw material and work in progress for the current swim season (to be collected by drawing upon letters of credit as finished goods are shipped). The agreement also provides for additional performance based payments if certain future business targets are achieved.
“The sale of these businesses is consistent with our prior announcement to re-align the Swimwear Group to enhance its future growth and profitability. While Anne Cole, Cole of California and Catalina are strong brands with important positions in their respective channels, their sale allows our team to focus its time and resources on those brands and businesses with the greatest long-term growth potential for Warnaco,” said Helen McCluskey, President of Warnaco's Intimate Apparel and Swimwear Groups.
Zvi Ben-Haim, President of In Mocean Group, LLC commented, “We are pleased to add Anne Cole, Cole of California and Catalina to our brand portfolio. As we grow, we believe these great brands will nicely complement our existing swimwear businesses.”
Warnaco also a major player in the intimate apparel, jeans, sportswear and accessories. It makes most of its products under the Calvin Klein label. Other labels include Warner's, Olga, Body Nancy Ganz, and Chaps.
