RAPAPORT... Xcel Brands Inc.
acquired the Judith Ripka brand and
its intellectual property for approximately $22.5 million, $14 million of which was paid in cash along with $6 million in interest-free promissory notes and 571,500 shares of common stock.
In
addition, Xcel will provide for up to an
additional $5 million in contingent future payments, payable in cash or
stock, based upon the achieving certain
net royalties generated by the Judith Ripka brand during annual
periods from October 2015 through September 2018. The acquisition is
expected to accrue toward Xcel's 2014 earnings.
Robert W. D'Loren, Xcel's CEO, said,
"We are excited by the opportunity to work with Judith Ripka and her
distinctive designs; the Judith Ripka Brand embodies our core mission of
delivering products of uncompromising quality. We see a tremendous
potential for engaging Judith's brand followers across new product
categories, leveraging our omnichannel strategy. This acquisition
satisfied all of our acquisition criteria; it's strategic, synergistic,
and accretive."
Judith Ripka, said,
"This is an outstanding opportunity to cultivate our brand and reach
our loyal followers in a new way. We deeply value our relationship with
Robert D'Loren and look forward to joining him at Xcel. I'm thrilled to
be part of the company and believe that we are well positioned for the
future."
Ripka will serve as chief designer under the new ownership.
Xcel Brands recently acquired designer apparel
brand Isaac Mizrahi New York and an interest in the Liz Claiborne New
York brand, quickly expanding into 100 categories for the Isaac Mizrahi
brand.
The Judith Ripka brand was founded in 1977 and is a leading
international fine jewelry and watch brand known for its distinctive
and refined designs.
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