NEW YORK — Miami-based Perry Ellis International acquired Salant Corp., the largest licensee of PEI branded apparel, in a $91 million deal Tuesday.
Salant chief executive officer Michael Setola was offered to stay on, but has elected to leave, said PEI ceo George Feldenkreis. The total merger consideration of $91 million is comprised of about $52 million in cash and about $39 million worth of newly issued PEI common stock.
Salant shareholders will get approximately $9.37 a share in value made up of at least $5.35 a share in cash and not more than $4.02 a share of PEI common stock. Both companies’ boards unanimously approved the merger agreement and shareholders still have to OK the deal, but they are expected to do so.
The transaction is subject to the usual scrutiny under the Hart-Scott-Rodino Act, as well as by the Securities and Exchange Commission, and is expected to close by mid-June.