Printer Friendly

VF TO ACQUIRE H.H. CUTLER COMPANY

 WYOMISSING, Pa., Oct. 11 /PRNewswire/ -- VF Corporation (NYSE: VFC) announced an agreement principle to acquire privately held H.H. Cutler Company for aggregate consideration, including assumption of debt, of $160 million. Cutler is a leading manufacturer and marketer of licensed brand name youthwear sold primarily through mass merchants. Headquartered in Grand Rapids, Mich., Cutler is organized into three divisions with projected 1993 revenues in excess of $200 million.
 Highly Recognized Brand Names Include Disney, Fisher-Price and Major League Sports
 The playwear and sleepwear divisions market Walt Disney, Fisher- Price, Cutler brand and private label youth apparel to mass merchants and national chains. Cutler is the largest youthwear apparel licensee of Walt Disney products and the exclusive licensee of Fisher-Price kidswear in the United States.
 The Cutler Sports Apparel Division (CSA) markets imprinted licensed sports activewear to a wide range of retailers. Cutler's sports licenses include the National Football League, Major League Baseball, the National Basketball Association, the National Hockey League, the World Cup and most major collegiate teams. CSA is experiencing rapid growth due to widespread interest in professional and collegiate sports, broad consumer demand for athletic sportswear and activewear, and Cutler's unique technical and management capabilities.
 Acquisition to Expand VF Youthwear Sales by 50 Percent
 "This is a very exciting opportunity for both VF and Cutler," said Lawrence R. Pugh, chairman and chief executive officer of VF. "Cutler is the premier company in the youthwear business in its channel of distribution and has achieved its success as a result of superior product and outstanding customer service. The fit with VF is terrific. We share similar business objectives as well as management philosophies. We also are fortunate that we will be adding a strong new member to our senior management team, Hal C. Smith, who will continue as president of Cutler and will report to VF's president, Mackey J. McDonald," Mr. Pugh stated, adding that Cutler would operate as a separate division of VF, with headquarters and current operations remaining in Grand Rapids.
 "For some time, we have been exploring opportunities to broaden our presence in the youthwear segment. Our acquisition of Healthtex, now a strong performer in department stores, was a very visible expression of our intention. Together with the youthwear products sold by Lee, Wrangler and Girbaud, we sell in excess of $400 million in youthwear apparel today. The addition of Cutler will expand that base by over 50 percent and add to our overall capabilities," said Pugh.
 "I agree with Larry," added Hal Smith, Cutler's president. "We're proud to be joining VF, one of the most reputable apparel companies in the world. VF is the perfect match for our 3,400 dedicated employees, our high quality products and our absolute commitment to superior customer service."
 The closing of the acquisition is expected to occur in December 1993 and is subject to the receipt of regulatory approval. According to a spokesperson for VF, the acquisition will be accounted for as a purchase and, while the impact on 1993 results will be negligible, the acquisition will be anti-dilutive in 1994.
 VF Corporation, an international apparel company, ranked 127th in FORTUNE'S "500 Largest U.S Industrial Corporations."
 -0- 10/11/93
 /CONTACT: Gerard G. Johnson, vice president and chief financial officer of VF Corporation, 215-378-1151, or Cindy Knoebel of Financial Relations Board, 212-661-8030/


CO: VF Corporation; H.H. Cutler Company ST: Pennsylvania; Michigan IN: TEX SU: TNM

LG-MP -- NY014 -- 0576 10/11/93 09:36 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 11, 1993
Words:576
Previous Article:FLEET FINANCIAL GROUP AGREES TO ACQUIRE STERLING BANCSHARES CORPORATION FOR APPROXIMATELY $125 MILLION
Next Article:SPIEGEL, INC., ANNOUNCES STOCK DIVIDEND AND QUARTERLY DIVIDEND
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters