LESLIE FAY TO BUY CYNTHIA STEFFE INC.
Byline: Leonard McCants
NEW YORK — The Leslie Fay Co. Inc. agreed Tuesday to purchase Cynthia Steffe Inc., which produces the Cynthia Steffe signature collection and two contemporary sportswear lines, Cynthia and The Bottom Line.
Steffe will also license her trade names to Leslie Fay. Subject to closing conditions, the deal should be completed by the end of April, Leslie Fay executives said. The move confirms a report in these columns.
“The contemporary market represents an excellent growth opportunity for our company,” said John Pomerantz, Leslie Fay chairman and chief executive officer, in a statement. “Cynthia Steffe is recognized for its high quality contemporary and designer sportswear and it will be a welcome addition to the Leslie Fay family.”
Within the past two years, Leslie Fay has made two key acquisitions: the license for Liz Claiborne dresses, which was announced in February, and the purchase of the Warren Group, an estimated $40 million business, which makes dresses under the David Warren, Warren Petites, Reggio and Rimini labels.
For Cynthia Steffe executives, the purchase will allow the company to look for opportunities to broaden its base and develop more product categories.
“We have been searching for the right strategic alliance for some time,” said Richard Roberts, Cynthia Steffe president, in a statement. “Leslie Fay’s extensive infrastructure and financial strength will enable our company to execute many aspects of its production and distribution cycle in a more effective and timely manner.”