CARLSBAD, Calif. — November 30, 2018 — Callaway Golf Co. announced today that it has entered into an agreement to acquire Jack Wolfskin for 418 million euros, or approximately $476 million assuming a 1.140 euro to U.S. dollar conversion rate, subject to certain purchase price adjustments.

The acquisition furthers Callaway’s push into the active lifestyle category after its successful 2017 acquisitions of TravisMathew and Ogio. Jack Wolfskin is an international, premium outdoor apparel, footwear and equipment brand. The company designs premium products targeted at the active outdoor and urban outdoor customer categories.

“We are very excited to welcome the Jack Wolfskin brand into the Callaway portfolio,” commented Chip Brewer, president and CEO, Callaway. “Jack Wolfskin is a premium outdoor brand with tremendous international reach, being a leading brand in the European market and having a substantial presence in China. It also helps Callaway expand its presence in the high-growth, active lifestyle category.”

Brewer continued, “We are also very excited to work with Jack Wolfskin’s great leadership team, led by CEO Melody Harris-Jensbach, to maximize this brand’s growth potential.”

“We are thrilled at the prospect of joining Callaway’s growing portfolio of premium, active lifestyle brands,” said Jack Wolfskin’s CEO Melody Harris-Jensbach. “Callaway has proven over many years that they are great innovators and brand builders. We see that they really invest in the brands they acquire and couldn’t be happier to be working with them.”

Assuming a 1.140 euro to U.S dollar conversion rate, Jack Wolfskin had net sales of $380 million in the fiscal year ended September 30, 2018, based on preliminary unaudited results provided by Jack Wolfskin. Jack Wolfskin provides over 3,000 points of sale globally, including wholesale, company-owned retail and franchised retail stores. Post transaction, Jack Wolfskin will continue to operate out of its headquarters located in Idstein, Germany.

The $476 million purchase price values Jack Wolfskin at a multiple of approximately 12 times its fiscal 2018 adjusted EBITDA of $40 million. Excluding non-recurring transaction costs and non-cash purchase accounting adjustments, financial expectations for Jack Wolfskin are as follows:

• Full year 2019 net sales are estimated to be flat compared to prior year, but are expected to accelerate to mid-single digit growth over the mid- to long-term.
• Full year 2019 adjusted EBITDA, excluding purchase accounting adjustments, is estimated to be approximately $33 million, a decrease compared to the prior year as a result of incremental investments to build long-term sustainable growth as well as projected cost of living increases.  The investments would include investments in design, marketing and infrastructure to allow for growth in Jack Wolfskin’s core business as well as future expansion into new regions.
• EBITDA is estimated to reach $50 million in 3-4 years, with long-term EBITDA margins forecasted to be accretive to Callaway’s current EBITDA margins.
• Full year non-GAAP earnings per share (EPS) is estimated to be $0.06 dilutive in year 1 and accretive in year 2. Non-GAAP EPS excludes non-recurring transaction costs, amortization of financing fees, and incremental non-cash expense resulting from the purchase accounting adjustments.
• Full year GAAP EPS is expected to be $0.25-$0.35 dilutive in year 1 and approximately neutral in year 2. GAAP EPS includes non-recurring transaction costs and incremental non-cash expense resulting from the acquisition purchase accounting adjustments.

The acquisition is expected to close in the first quarter of 2019, subject to regulatory approvals and other customary closing conditions. Callaway intends to finance the transaction with a $476 million term loan facility, led by BofA Merrill Lynch and JP Morgan Securities LLC.

Latham & Watkins LLP acted as legal counsel and JP Morgan Securities LLC acted as exclusive financial advisor to Callaway. Kirkland & Ellis International LLP acted as legal counsel and Houlihan Lokey as exclusive financial advisor to Outdoor Holdings SCA – the holding company of Jack Wolfskin. THM Partners acted as director of and advisor to the Jack Wolfskin Group.

Posted December 2, 2018

Source: Callaway Golf Company

LENZING, Austria/KARACHI, Pakistan— November 28, 2018 — Denim’s unlimited versatility is showcased in a capsule created by an international collaboration between two companies: Chottani, a leading garment maker in Pakistan and Lenzing, the Austrian manufacturer of TENCEL™ branded lyocell fibers. The collection is embellished with Swarovski crystals, a name that is synonymous with the finest of quality. Chottani and Lenzing have come together to create the “Mesmerize” collection, which will be showcased at Denim Premiere Vision in London on December 5th and 6th. Please visit the The Old Truman Brewery December 5 and 6.

“’Mesmerize’ takes a totally different perspective on denim and its usual definitions,” says Aamir Chottani, the company’s marketing director. “This beautiful collection takes denim to the luxury level and away from the vintage themes where the fabric is traditionally anchored. It is truly denim haute couture.”

In this international collection, Chottani utilizes the resources of two Austrian- based companies, Lenzing AG and Swarovski to accentuate women’s garment styles. The sophisticated indigo fabrics in the collection are made with Tencel branded lyocell fibers. In addition to enhancing the sustainability of the fabrics, Tencel  Lyocell fibers adding richness, softness, and beautiful drape. The fabrics are also receptive to special finishing techniques that add to the fabrics’ sumptuous look and feel. Swarovski crystals are hand-sewn to the garments for a dazzling enhancement that elevates the designs from traditional denim to something very special.

“It is very exciting to see Chottani’s expert design and skillful production transform beautiful Tencel Denim fabrics and glimmering crystals from Swarovski into elegant, high fashion creations,” said Tricia Carey, director of Global Denim Business Development at Lenzing. “These enchanting styles celebrate luxury, femininity and glamour in a way that will change everyone’s impression of denim.”

These women’s dresses, tops, and pants that make up the “Mesmerize” group were imagined and brought to life by the companies Fashion Director, Zainab Chottani, and made at her atelier in Karachi, Pakistan. The garments will be displayed in a separate curated trend section at Denim Premiere Vision.

“Denim Première Vision is proud to host the launch of the “Mesmerize” a denim haute couture collection during its forthcoming edition in London,” said Fabio Adami Dalla Val, Show Manager Denim Première Vision. “As part of it’s new concept, Denim Première Vision seeks to encourage the discovery of new sources of inspiration. The collaboration between Chottani and Tencel will unveil a luxury and premium collection, aimed at inspiring brands for their Spring Summer ‘20 collection.”

Posted November 28, 2018

Source: The Lenzing Group

NEW YORK CITY — November 28, 2018 — Gap is pleased to launch the new exclusive menswear collection of GQ’s “Coolest Designers on the Planet.” The program, which recognizes menswear designers, has expanded to feature international talent from around the globe. This year, Gap invited Balmain, Dsquared2, MSGM, No Vacancy Inn, Officine Générale, Opening Ceremony, Stampd and Surf is Dead to design their take on the classic Gap sweatshirt.

“This year, we took a fresh approach to our GQ for Gap collaboration,” says John Caruso, Gap vice president of Men’s Design. “Our Gap hoodie and crewneck sweatshirts are iconic American staples that have appeared in countless ad campaigns and editorials. We are so excited to show our customers how each designer re-invents this classic.”

“This year’s collection spotlights the iconic Gap sweatshirt, with collaborations from menswear’s most exciting names,” says GQ editor-in-chief Jim Nelson. “It represents the very best of the Coolest Designers on the Planet program and the global influence of menswear in the thing we all really want to wear: a classic sweatshirt.”

The GQ for Gap collection consists of eight sweatshirts, one crewneck and seven hoodies, created by the eight designers. Designed to their brand aesthetic, each designer incorporated their own logo alongside the Gap logo with custom color palette, graphics and silhouette. For example, the MSGM for GQ for Gap x MSGM is oversized, featuring a double hood in a red and white color palette while GQ for Gap x Surf is Dead is a boxy silhouette in gray with neon graphics and dolman sleeves. The collection is available starting November 28th, at select Gap stores in the United States, Canada, China, Hong Kong, Japan, and throughout Europe. It will also be available online at www.gap.com/gq. The collection prices range from $78 to $148.

As part of this year’s program, GQ will be making donations on behalf of each designer to the following organizations:

• Balmain: (RED), working to eradicate HIV/AIDS
• Opening Ceremony: Destination Tomorrow, a non-profit for LGBTQ+ youth in the Bronx
• STAMPD: Ride2Revive, provides ill children with memorable and adrenaline-filled driving experiences meant to distract them from their health related struggles and revitalize their senses
• Surf is Dead: Miracle Babies, devoted to providing financial assistance and supportive services to parents of sick newborns
• No Vacancy Inn: Flint Kids Fund, working to help the children of Flint, Michigan who have been exposed to lead in their drinking water
• DSQUARED2: The Center, the heart and home of NYC’s LGBT community
• MSGM: Pane Quotidiano, an over 100-year-old Italian-based organization that provides free food to the poor on a daily basis
• Officine Générale: The Bibi Fund, dedicated to curing cancer in children

GQ’s Best New Menswear Designers in America project, which was established in 2007, works to advance and bring attention to emerging American menswear designers. The recognized designers were selected by GQ’s editor-in-chief, Jim Nelson, creative director-at-large Jim Moore, and the magazine’s fashion editors, and took part in a mentoring program led by GQ and Gap.

Posted November 28, 2018

Source: Gap

ANDOVER, Mass. — November 28, 2018 — Polartec has announced Polartec® Power Air™, a fabric technology engineered to reduce fiber shedding. By encapsulating lofted fibers within a multilayer, continuous yarn fabric construction, this revolutionary new platform offers advanced thermal efficiency that is proven to shed five times less than other premium mid-layer weight fabrics.

Insulation that effectively regulates core body temperature has traditionally been achieved via lofted or high-pile knit structures that hold warm air. Although Polartec is a leader in making resilient materials, it has recognized that any exposed fiber is susceptible to shedding as a function of normal wear. The Polartec Power Air construction process mitigates this by encasing the insulating lofted fibers within the knitting process.

“By using the efficiency of encapsulated air to shelter lofted fibers, Polartec Power Air will drastically improve how fabrics perform over their lifetime with respect to versatility, comfort, and sustainability,” said Gary Smith, Polartec CEO. “We’re only beginning to realize the potential for this new type of fabric construction.”

While creating a more environmentally sound construction was the initial inspiration for Power Air, the innovation also enables greater design versatility, with distinctive visual signatures. The initial release features an internal grid structure on one side not unlike ‘fabric bubble wrap’ which simultaneously holds air and increases breathability, while the other side features a smooth, durable outer surface that resists pilling and minimizes drag.

As the first fabric construction to encase air with a continuous yarn, Polartec Power Air is a foundational technology platform that will eventually provide shedding reduction to all existing apparel categories (including insulation, lightweight next to skin, and extreme weather protection). The innovation has recently gained recognition from the World Textile Information Network with its Future Textile Award for Best Innovation: Sustainable Textiles.

“Polartec has never shied away from solving tough, intractable problems,” said Mike Rose, Polartec vice president of Product Development. “Power Air has the potential to be our most significant development since pioneering the process to knit fabrics made of post-consumer plastic bottles.”

Power Air is the culmination of a multi-year development consisting of thousands of work hours and dozens of iterations, and is the latest product of Polartec Eco-engineering™. Eco-engineering is the process by which Polartec deploys recycled inputs, advanced production techniques, highly efficient logistics, and rigorous testing and certifications to create an unrivaled innovation pipeline devoted to producing sustainable fabrics with elite performance characteristics.

Throughout its history of innovation, Polartec has built many unique, robust and repeatable testing protocols that emulate a lifetime of use and abuse from serious athletes and professionals. In the case of Polartec Power Air, a whole new testing protocol had to be invented to measure shedding due to home laundering. The protocol simulates dozens of launderings in a single cycle to accurately capture any microfibers lost in a lifetime of use. The test then accurately determines the percentage of weight loss due to shedding.

Pioneers of eco-engineering sustainable fabrics, Polartec invented the process of knitting technical fleece from post-consumer plastic bottles in 1993, upcycling well over one billion bottles to date, and continues to lead the industry in offering fabric technologies made of recycled content. Earlier this year, Polartec introduced its 100% recycled Power Fill insulation that further reduces environmental impact by eliminating the need for wasteful and non-recycled carrying agents used in other insulation options.

Initially for apparel, Polartec Power Air technology will be publicly unveiled by Polartec CEO Gary Smith tomorrow, November 29, at Performance Days in Munich Germany. The Polartec Power Air Hoody is now available from Adidas, with more brands including Houdini and Mammut set to release their own offerings in the coming months.

“Polartec Power Air is more than solving a problem and creating a new platform,” said Smith. “It’s a brand statement about the power of fabric.”

Posted November 28, 2018

Source: Polartec

ANDOVER, Mass. — November 27, 2018 — Expanding its line of premium bike apparel designed in partnership with Polartec, Kitsbow released the new Power Wool Performance Knicker, Tight, Arm Warmer and Knee Warmer, all of which are made locally in the United States. The products are made of a new compression version of Polartec® Power Wool™ fabric technology, a superior bi-component knit that combines the best of both natural and synthetic fibers, without blending them.

The unique plated construction of Polartec Power Wool fabric places only soft, high quality merino wool next to skin where it creates a comfortable microclimate, moves moisture in a vapor state, and is naturally antimicrobial, while synthetic fibers on the outside enhance stretch, recovery, durability, and more effectively manage moisture.

“The industry standard of blending wool and synthetic yarns together can hinder the performance of the material, but Polartec’s Power Wool construction is incredibly advanced and has optimized our base layers for killer performance, no matter the condition,” said Zander Nosler, Founder and CEO of Kitsbow. “This collection is also made ‘just in time’ in Petaluma, bringing our number of styles made in the U.S. up to 50 percent — and growing.”

“This new compression stretch version of Power Wool enables greater comfort and performance for cycling in cool to cold conditions,” said Gary Smith, Polartec CEO. “We knew Kitsbow would find it to be highly useful and make beautiful product from it, so we’re very pleased to partner with them for the launch.”

Posted November 27, 2018

Source: Polartec