KIMMEL GETS $228 MILLION IN JONES APPAREL OFFERING
NEW YORK — Sidney Kimmel, chairman of Jones Apparel Group, collected $228 million before underwriting costs from the sale of 4.5 million shares in a secondary stock offering that was priced Friday.
The company did not sell any stock in the offering, priced at 50 5/8.
The sales will reduce Kimmel’s stake in Jones Apparel to 14 percent, or 7.3 million shares, from 23 percent.
Kimmel, who founded Jones Apparel while working for W.R. Grace & Co. in 1970, previously realized over $300 million from selling shares of Jones Apparel since he took his company public in May 1991.
The 69-year-old executive paid a combined total of $7.4 million for Jones to Grace in 1975 and to buy out a partner’s interest in 1989.
Shares of Jones Apparel closed Friday at 50 5/16, down 7/16, on the New York Stock Exchange.
In the half ended June 30, the apparel company’s earnings surged 44.9 percent to $48.8 million, or 90 cents a share, while sales advanced 28 percent to $580.9 million.
Jones Apparel manufactures women’s sportswear, suits and dresses, including the licensed Lauren Ralph Lauren better career and casual sportswear line. Its own brands include Jones New York, Evan-Picone and Rena Rowan.