CONVERSE COMPLETES ACQUISITION OF APEX ONE.North Reading, Mass.--(BUSINESS WIRE)--June 2, 1995--Converse Inc. (NYSE NYSE See: New York Stock Exchange :CVE (Common Vulnerabilities and Exposures) A list of information security exposures and vulnerabilities sponsored by US-CERT and maintained by the MITRE Corporation. ) today announced that its acquisition of Apex One, Inc. was formally completed on May 18, 1995. Apex One is a leading designer and marketer of quality activewear, outerwear, headwear head·wear n. A hat or other covering for the head. , accessories and printables under licenses with several major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. professional sports The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. teams and leagues, colleges and universities. This acquisition provides Converse with a complementary product line and entry into the licensed sports apparel sector, providing the company with a more competitive and strategic position in the industry. The Company also announced that Michael Lewis Michael Lewis or Mick Lewis may refer to:
Converse Chairman and Chief Executive Officer Gib Ford stated that the integration of Apex into the Converse operation is well underway. "The transition teams are in place to ensure the scheduled delivery of Apex One's 1995 back-to-school orders, as well as beginning the extensive logistical arrangements involved in the integration of the two companies into one operation. The Apex headquarters and distribution center in Piscataway, N.J. will cease operations in early 1996, incorporating the apparel distribution into the existing Converse distribution center." Mr. Ford added that, "Converse will integrate approximately 45 Apex employees into its corporate operation, as well as 35 employees from the Apex international offices in Germany and Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , over the next few months. We will also launch the first head-to-toe Converse footwear and apparel programs during the 1995 holiday selling season, where the consumer will see the first results of our acquisition of Apex. The fully integrated footwear and apparel programs will be delivered in spring 1996 with the Apex acquisition expected to contribute to earnings in 1996." During the next six months, the Company will merge several Apex operational functions including customer service, finance, MIS, credit and distribution, into existing Converse departments. Other Converse functions, such as sports marketing, will be expanded due to the addition of Apex One's licensing agreements with various professional sports teams and leagues under licenses granted by the National Football League (NFL NFL abbr. National Football League NFL (US) n abbr (= National Football League) → Fußball-Nationalliga ), the United States Olympic Committee “USOC” redirects here. For USOC in telephony, see registered jack. The United States Olympic Committee (USOC) is a non-profit organization that serves as the National Olympic Committee (NOC) for the United States and coordinates the relationship between the and numerous North American colleges and universities, which will be added to the extensive list of Converse endorsement contracts with several NBAR NBAR Network-Based Application Recognition (Cisco) NBAR National Bureau of Asian Research NBAR Nonbinding Allocation of Responsibility NBAR Non Binding Preliminary Allocation of Responsibility athletes, coaches and college teams. "As a result of the Apex acquisition, Converse has more than doubled the number of professional players, teams, colleges and universities it will be working with," Mr. Ford stated. "Combined with our existing position as the official shoe of the NBA NBA abbr. 1. National Basketball Association 2. National Boxing Association NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= and the Women's Basketball Coaches Association, plus the addition of the strong Apex licensing affiliations, Converse will have a comprehensive head-to-toe presence on the court and playing field beginning this holiday season." The details of the Apex acquisition under the terms of the purchase agreement involve Converse issuing $11 million of subordinated notes to Apex investors and 1.75 million warrants for five years to purchase shares of Converse Inc. stock at an exercise price of $11.40. In the purchase agreement, Converse agreed to discharge certain liabilities, including approximately $21 million of existing Apex bank debt. On May 18, 1995 as a wholly-owned Converse subsidiary, Apex entered into a $50 million credit facility with Banker's Trust Commercial Corporation for the Company's working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and to retire the existing Apex bank debt. Converse Inc., the largest U.S. manufacturer of athletic shoes, is a leading designer, manufacturer and marketer of high quality athletic and leisure footwear and is a licensor of sports apparel and accessories that are distributed worldwide through over 9,000 athletic specialty, sporting goods, department and shoe stores. CONTACT: Investor Contact: Donald J. Camacho Chief Financial Officer 508/664-1100 or Robert Jones/Christine DiSanto Morgen-Walke Associates 212/850-5600 or Media Contact: Jennifer Murray Director of Corporate Communications 508/664-1100 Stacy Berns Morgen-Walke Associates 212/850-5675 |
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