VF Corp Acquires Mo Industries Holdings
Greensboro, N.C.-based VF Corp. - an apparel company with a diverse, international portfolio of
brands - now owns Mo Industries and its Splendid® and Ella Moss® brands after acquiring the
remaining two-thirds of the capital stock of Los Angeles-based Mo Industries Holdings Inc. for $161
million plus the repayment of $47 million in existing net debt. VF Corp. will fund the acquisition
through strong cash flow from operations.
VF Corp. initially bought one-third of the company from founder Moise Emquies and Summit Partners, a private equity and venture capital firm, in June 2008. The Splendid and Ella Moss lines - which have tripled revenues since 2004 and realized sales of $95 million in 2008 - will become part of VF Corp.'s Contemporary Brands coalition. VF Corp. expects the new brands to contribute $70 million to company revenues in 2009, and hopes that despite the current slow economy, their long-term revenues could grow by 10 to 15 percent.
In a related move, the company's John Varvatos® mens sportswear brand will become part of the Contemporary Brands coalition, shifting from its Sportswear coalition.
"We're very pleased to be adding two strong and growing brands to our portfolio," said Mike Egeck, president, Contemporary Brands, VF Corp. "These brands not only complement each other well, but they also complement our 7 For All Mankind® and lucy® brands. The addition of the Splendid and Ella Moss brands and the move of the John Varvatos® business to our coalition provide us with the ability to service the contemporary consumer and lifestyle in many different ways."
At VF Corp., Emquies will hold the title of founder/CEO of Mo Industries and will report to Egeck. Former Mo Industries CFO and COO Jonathan Saven is now president. Splendid and Ella Moss Creative Director Pamella Protzel Scott will retain her position under the new organization.
"We're excited to become part of the VF family of brands," said Emquies. "This is a great opportunity for both our business and our associates, and we look forward to partnering with VF to leverage their size, scale and resources to continue to grow our business both domestically and internationally."