KIMMEL TO OFFER 4.5 MILLION SHARES OF JONES APPAREL
NEW YORK — Sidney Kimmel, chairman of Jones Apparel Group, plans to sell 4.5 million shares of the company in a secondary stock offering, which should raise nearly $240 million at current market prices.
The company itself will not sell any stock in the offering.
The sales will reduce Kimmel’s stake in Jones Apparel to 14.5 percent from 23 percent. Kimmel currently holds 12.1 million shares.
Kimmel, who founded Jones Apparel while working for W.R. Grace & Co. in 1970, has realized over $300 million from selling shares of Jones Apparel since he took the company public in May 1991. Kimmel, 69, paid a combined total of $7.4 million for Jones Apparel to W.R. Grace in 1975 and in buying out a partner’s interest in 1989.
Shares of Jones Apparel closed on Wednesday at 52 3/4, down 1 7/8, 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.