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CIT Trade Finance, Garrison Provide $110MM in Joe’s Jeans Acquisition (Update)

October 10, 2013, 08:38 AM
Filed Under: Apparel

Editor's Note: This news item, which originally ran on ABL Advisor on Oct. 2, has been updated to include comments from Jon Lucas, president of CIT Trade Finance. Lucas' comments are inserted as paragraph 3.

Joe’s Jeans Inc. announced it has completed the acquisition of Hudson Clothing Holdings, Inc., a leading global designer and marketer of women’s and men’s premium branded denim apparel.

Transaction financing consisted of a $50 million revolving credit facility with CIT Trade Finance as agent and a $60 million senior term loan provided by affiliates of Garrison Investment Group as agent. CIT Capital Markets acted as lead arranger for the transaction financing. CIT Trade Finance will also provide factoring services to the combined companies. The total purchase price for Hudson was $97.6 million.

“Joe’s Jeans and Hudson are firmly established brands in the premium denim industry that had established comprehensive factoring and financing relationships with CIT that provided for accounts receivable and inventory financing,” said Jon Lucas, President of CIT Trade Finance. “We’re pleased both companies recognized our deep expertise and gave us the opportunity to arrange financing that supports this transaction.”  View the entire press release issued by CIT Trade Finance on Oct. 10 here.
“We are very pleased to have completed the acquisition of Hudson and we look forward to capitalizing on the numerous opportunities created by this partnership,” stated Marc Crossman, President and CEO of Joe’s Jeans. “The combination of our two organizations, which doubles the size of our business, significantly enhances our prospects for growth across wholesale, retail and e-commerce, both domestically and overseas. The combination also provides operating and supply chain benefits that should drive meaningful cost savings in the future and underscores our positive outlook.”

Hudson’s CEO, Peter Kim, added, “We are excited about this merger. We could not have thought of a better partner to join with to help us achieve a shared strategic vision of being the leader in the premium denim market and impacting it in a significant way.” Mr. Kim continued, “We are committed for the long haul and are eager to cross share our expertise. We expect the combined company to be at the forefront of the industry.”

Threadstone Advisors LLC served as financial advisor to Joe’s Jeans on the transaction and Akin, Gump Strauss Hauer & Feld LLP served as legal advisor. Lazard Middle Market LLC served as financial advisor to Hudson on the transaction and McDermott Will & Emery LLP served as legal advisor. Triangle Capital LLC provided a Fairness Opinion to the Board of Directors of Joe’s Jeans.

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