The Warnaco Group, Inc. entered into an agreement to sell its Lejaby business to Palmers Textil AG for approximately 32.5 million (approximately $47 million) in cash and 12.5 million (approximately $18 million) in an interest free note due December 31, 2013. The sale leaves Warnaco with only the Speedo and Calvin Klein brands in its swimwear business.
Commenting on the transaction, Helen McCluskey, Warnacos Group President of Intimate Apparel and Swimwear stated, “We would like to thank the Lejaby team for its contributions over the years. Under Palmer's ownership, Lejaby will continue to be operated from Lyon, providing continuity to its core employees. In the future, we believe that, under Palmers ownership, Lejaby will benefit from new opportunities. Todays announcement completes the strategic realignment we announced in November, including the companys exit from all owned manufacturing. We believe Warnaco is now well positioned to focus our efforts on our brands and businesses with the greatest long-term potential for Warnaco and its stakeholders.”
“We are thrilled by the acquisition of the Lejaby business. We believe adding Lejaby, an iconic and well established brand, to our portfolio will surely enhance our future growth opportunities,” commented Thomas Weber, CEO of Palmers Textil AG.