NEW YORK -- Cygne Designs Inc.'s secondary offering of 3.5 million shares was priced this week at $18.25 a share.
The company sold 2 million shares to raise $34.07 million. Cygne plans to use $6 million in proceeds to repay debt used to acquire Fenn Wright & Manson in April. The rest will be used for potential acquisitions and general corporate purposes.
Selling shareholders raised $25.5 million from the sale of 1.5 million shares. Among management, Irving Benson, Cygne's vice chairman and president, sold 404,986 shares to realize $6.9 million; Colin C. Fenn, chief operating officer and former president at Fenn Wright, sold 135,690 to raise $2.3 million.
Other sellers included Chikari Sasaki, a Hong Kong investor, 264,476 shares to realize $4.5 million; Plymouth Holding Corp., a Bermuda-based holding company that owned 50.1 percent of Fenn Wright, 255,300 shares to net $4.3 million; The Limited Direct Associates L.P., an investment arm of Columbus-based The Limited Inc., 200,000 shares to realize $3.4 million; and Trevor J. Wright, director at Cygne and formerly design director at Fenn Wright, 119,507 shares to raise $2 million.
Cygne, which went public In July 1993 at $10 a share, makes private label apparel. Its largest customers are The Limited Inc. and Ann Taylor Stores Corp.
The firm issued a strong first-quarter report earlier in the month. For the three months ended April 30, Cygne reported earnings more than doubled, to $1.7 million, or 19 cents a share, from $781,000, or 15 cents on fewer shares, a year earlier.
The number of shares outstanding in the latest quarter was up 67 percent from a year ago because of an initial public offering in August.
Sales in the quarter jumped 59.4 percent, to $79.2 million from $49.7 million. Of the $29.5 million increase in sales, $7.9 million came from Fenn Wright, which was acquired on April 6.
Combined sales rose 18 percent, to $104.6 million from $88.8 million.
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