Vilebrequin, the luxury swimwear brand, has been bought by G-III Apparel Group Ltd for 85.5 million euros (US$ 105.7 million or Rs 583 crores). The new owner plans to add more retail locations throughout the world and further develop the brand's men's
accessories and resort-wear offerings, G-III said in a statement.
Of the purchase price, 70.5 million euros (US$ 87.2 million or Rs 481 crores) was paid in cash and 15 million euros (US$ 18.5 million or Rs 102 crores) was paid by unsecured promissory notes, due December 31, 2017, with interest at the rate of 5 percent per year.
In addition to the purchase price, the agreement provides for up to an additional 22.5 million euros (US$ 27.8 million or Rs 153 crores) in milestone payments, reported Reuters.
Vilebrequin is a French brand of swimwear founded in 1971 in Saint-Tropez, France. It's best selling item are its menswear trunks, which come in colourful prints with a waterproof wallet. Inspired by surfer’s trunks, the design was very different from the traditional “swim briefs” of the time. Colourful and original, the fabric was made out of spinnaker canvas meaning the new swimsuit dries more quickly in the sun and wind.
Vilebrequin currently stocks its collections through 185 owned and franchised specialty retail stores, as well as wholesale distribution. It had 2011 sales of 45.1 million euros (US$ 55.7 million or Rs 307 crores).
The company said the acquisition is expected to be neutral to its earnings per share for its fiscal year ending Jan. 31, 2013 excluding acquisition and integration expenses.
Image: Vilebrequin trunks