VF Corp., which first acquired one-third of Mo Industries Inc. capital stock last June, has purchased the remaining two-thirds of the Los Angeles-based firm, which owns the Ella Moss and Splendid contemporary brands.
The Greensboro, N.C.-based VF has acquired the firm from its founder, Moise Emquies, and Summit Partners, a private equity and venture capital company. VF is paying $161 million for the remaining two-thirds of Mo Industries, plus the repayment of $47 million in existing net debt, which will be funded through VF’s cash flow from operations. The acquisition agreement in June included a provision allowing VF to acquire the remaining stock in early 2009.
“Up until now we have been talking in broad terms about the growth of these brands,” said Mike Egeck, president of VF’s contemporary brands coalition. “We see a lot of opportunity to expand internationally, and VF has a lot of the infrastructure there so we can do that.”
In addition to closing the deal on Thursday, Egeck said the group has signed a lease for the first freestanding Splendid store on Robertson Boulevard in Los Angeles. The store, Egeck said, will house the women’s, men’s and children’s collections. VF hopes to open the store sometime in the third quarter.
Emquies, who has been serving as chief executive officer and president, will continue with the company as founder and ceo, reporting to Egeck. Jonathan Saven, who has been chief financial officer and chief operating officer, has been promoted to president. Pamella Protzel Scott will continue in her role as creative director for both brands.
According to VF, adding these brands to the portfolio should contribute approximately $70 million to 2009 revenues and be slightly accretive to earnings per share; these expectations were incorporated into VF’s revenue and earnings guidance provided on Feb. 10. VF said it expects the brand’s long-term revenues to grow 10 percent to 15 percent annually.
Splendid and Ella Moss are primarily sold in high-end specialty stores and better department stores such as Bloomingdale’s, Barneys New York, Neiman Marcus, Shopbop.com, Nordstrom and Saks Fifth Avenue. Combined revenues of the two brands were $95 million in 2008.
Other companies in VF’s contemporary brands coalition include the Seven For All Mankind and Lucy brands, which were both acquired in July 2007 for an estimated $885 million, and John Varvatos men’s sportswear.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia