ONE MORE STEP FOR JONES: Jones Apparel Group Inc. said on Wednesday that it successfully completed its cash tender offer for Maxwell Shoe Co. Inc. for all the outstanding shares of common stock, together with the associated preferred stock purchase rights. Peter Boneparth, chief executive officer of Jones, said in a statement, “The acquisition of Maxwell Shoe Co. is an excellent strategic fit for Jones Apparel. It is a wonderful complement to our existing footwear business and allows us to further consolidate the highly recognizable Anne Klein brand within our portfolio.” Jones, which intends to complete the acquisition for Maxwell today, funded the transaction with cash on hand and through borrowings under its revolving credit facility.
A MEETING IN TIME: Another Versace shareholder’s meeting is scheduled for the end of August to reconfirm the board members: Donatella and Santo Versace and Luxottica chairman Leonardo del Vecchio. Allegra Versace Beck, who gained full control of her 50 percent stake in the company on her 18th birthday, June 30, could join the board if she decides to become a member. Beck plans to attend a university in the U.S. this fall. Donatella Versace owns 20 percent of the company, and her brother Santo owns the remaining 30 percent.
HENKEL CUTS FORECAST: German home and personal care producer Henkel slashed its sales forecast in half Tuesday, blaming increased competition, unemployment across Europe and thinning demand. The company now expects its 2004 revenue to grow about 2 percent instead of its earlier predictions of 3 or 4 percent. With Henkel’s recent $2.9 billion acquisition of Dial Corp., the company still anticipates that its operating profit will rise about 15 percent. “Henkel’s focus is on securing its profit targets and market positions. These targets enjoy priority over the originally targeted organic sales growth,” the company said in a statement.
NYLON PRICE HIKE: Honeywell Nylon LLC said Tuesday it plans to raise its nylon prices by 5 cents a pound, starting with Aug. 1 shipments. In a statement, the Charlotte, N.C.-based company blamed a runup in the cost of benzene for inflating its raw materials costs. The recent rise in oil prices has driven up the cost of many oil-based synthetic fibers, including polyester and spandex, in addition to nylon.