Textile major S Kumars is all set to acquire Hartmarx, one of the last remaining American clothing manufacturers and better known for dressing President Barrack Obama, for $119 million.
Hartmarx, the men's largest formal wear clothing company in US, had recently announced that 50 of its wholly-owned US subsidiaries had filed for protection under the local bankruptcy code.
A consortium of S Kumars Nationwide and its operating partner emerged winners after a competitive bidding process which was conducted to achieve the highest possible value for Hartmarx's stakeholders.
In a press note, SKNL said on Tuesday that its US subsidiary along with the operating partner have successfully bid for the acquisition of Hartmarx Corporation.
"The United States Bankruptcy Court for the Northern District of Illinois on June 26 approved the sale of substantially all of the assets of Hartmarx Corporation for a total transaction value of about $119 million," the press note said.
The transaction is expected to close during July 2009.
SKNL and its operating partner look forward to revitalising the iconic American brands that constitute the Hartmarx portfolio, the press note said.
Commenting on the acquisition, Nitin Kasliwal, managing director and vice chairman of SKNL said, 'this acquisition will enable SKNL to significantly enhance its global footprint. Hartmarx directly owns or controls 34 brands making us very excited about opportunities that lie ahead.'
India's strength in textiles can only gain momentum if Indian companies form synergistic alliances with textiles and apparel companies from all over the world, he said.
The group is continuously searching for alliances and acquisitions that fit in with its growth strategy and thereby creating value for its shareholders, he said.
Three top executives of Hartmarx to resign: Another report from Chicago states that top three executives of Hartmarx will leave the company.
The 125-year-old suit maker announced that senior vice president and chief financial officer Glenn Morgan, group president of its women's wear division Susan Falk and group president of luxury Paulette Garafalo would leave the company effective June 30.
In a statement, Hartmarx CEO Homi Patel said Morgan has been his partner 'in good times and bad'.
"Morgan's low-keyed, yet effective demeanour helped us navigate through some very difficult situations. He was also instrumental in making several acquisitions that significantly changed the nature of the company," Patel said.
Falk was instrumental in 'upgrading several of our women's wear lines and has participated in helping grow our very successful women's jeans business,' he said.
Patel praised Garafalo for converting Hickey Freeman 'from a tailored clothing label into a luxury brand with a retail, web and international footprint'.
Last week, a US court gave its approval for bankrupt Hartmarx's sale to British investment firm Emerisque and its partner SKNL's US subsidiary SKNL North America BV for about $120 million.