VF Buys Ella Moss, Splendid
Greensboro, N.C.–based apparel giant VF Corp. has announced the complete acquisition of Mo Industries Inc., owner of the Ella Moss and Splendid contemporary knits brands. In June, VF acquired one-third of Mo Industries and has agreed to pay $161 million for the remaining two-thirds of the company, plus the repayment of $47 million in existing net debt. The brands will become part of VF’s Contemporary Brands coalition, which also includes the Seven For All Mankind and Lucy brands.
According to a release by VF, both brands are distributed primarily through better department and specialty stores and had combined revenues of $95 million in 2008. VF said it expects the brands to reach $70 million in revenues in 2009, with long-term revenue growth of 10 percent to 15 percent annually.
As part of the deal, founder Moise Emquies, who has been serving as chief executive officer and president, will continue as founder/chief executive officer, reporting to Mike Egeck, president of VF’s Contemporary Brands. Jonathan Saven, who has been serving as chief financial officer and chief operating officer of Mo Industries, has been promoted to president. Pamella Protzel Scott will continue in her role as creative director for the two brands. —Erin Barajas
