Perry Ellis to go private in a 437 million dollars deal with founder George Feldenkreis

Perry Ellis International has entered into a 437 million dollars transaction to become a private company through an acquisition led by George Feldenkreis, Perry Ellis’ Founder and member of the company’s board of directors. Through this deal, he will acquire all of the outstanding common shares of Perry Ellis not already beneficially owned by the Feldenkreis family for 27.50 dollars per share in cash.

“I believe that Perry Ellis’ ability to invest and innovate is limited by the short-term pressures of being a public company. I am confident that as a private company, Perry Ellis will be best positioned to make investments in digital innovation, artificial intelligence and marketing, that support our long term strategy to grow the company’s powerful global lifestyle brands, while expanding into higher-margin businesses and channels of distribution, including international, direct-to-consumer and licensing,” said George Feldenkreis in a statement.

Perry Ellis to go private in 437 mn dollars deal

Following completion of the transaction, the company said, Oscar Feldenkreis will continue to lead the company as Chief Executive Officer. George Feldenkreis, Director and Founder, will return to an active role in the management of the company. Perry Ellis will continue to be headquartered in Miami, Florida and upon close, Perry Ellis will become a privately held company and Perry Ellis common shares will no longer be listed or traded on any public market.

“The completion of this transaction will enable Perry Ellis to preserve the integrity of its infrastructure and business units across the United States and abroad. Our partners should benefit from our enhanced ability to make long term investments in brands, technology and innovation while continuing to remain focused on executing on our long-term growth strategy,” said Oscar Feldenkreis.

The company added that purchase price represents a premium of approximately 21.6 percent to Perry Ellis’ unaffected closing stock price on February 5, 2018, the last trading day prior to George Feldenkreis announcing his proposal to take the company private. Additionally, the company and George Feldenkreis have agreed to defer the next annual meeting for the election of directors while the merger agreement is pending.

“The special committee and its advisors conducted a disciplined and independent process to ensure the best outcome to maximize value for shareholders. We believe, upon the closing, that this transaction delivers an immediate cash premium and is in the best interest of all Perry Ellis shareholders,” added J. David Scheiner, Non-Executive Chairman of the Perry Ellis board of directors and Chair of the special committee in a statement.

Picture:Facebook/Perry Ellis