Hudson Union Jack jean.
16 Jul. 2013
Joe's Jeans to buy Hudson ClothingLos Angeles-based clothing brand Hudson is about to have a new owner–and the name is a familiar one.
Joe’s Jeans Inc. and Hudson announced today that they have signed a definitive stock purchase agreement for Joe’s to acquire privately held Hudson for approximately $97.6 million.
The transaction is expected to close on or about August 31, 2013.
Marc Crossman, president and CEO of Joe’s Jeans, a publicly traded company on the Nasdaq Stock Market, said in a statement: “We are extremely excited about joining forces with Hudson Jeans. Once the acquisition is complete, we expect to nearly double the size of our business, meaningfully increase our international and e-commerce penetration and enhance our overall prospects for growth. Paramount to the combination is preserving the DNA of each existing company by retaining its employees and separate facilities. This deal represents a landmark event in the history of our company and we are committed to capitalizing on the many opportunities this transformative transaction will create in marketplace.”
He added, “We believe by leveraging our sourcing capabilities to realize cost savings across all three components of making a jean, from fabric, trim to labor, will significantly reduce our input costs while we drive top line sales by building on the strengths of each company’s distribution.”
As part of the deal Hudson founder Peter Kim, who launched the brand in 2002, will remain in his role as Hudson’s CEO and also join Joe’s Jeans Board of Directors. ““We are thrilled at the prospect of joining a highly respected team of people that has created an incredible business,” Kim said. “To be able to collaborate with Joe's Jeans to create one of the largest premium denim companies in the world is a phenomenal opportunity for us all. We look forward to benefiting from each other’s strengths and to entering a new chapter of growth.”
Dan Fireman, managing partner of Fireman Capital Partners, which acquired a controlling stake in Hudson in 2009, said, “We are proud of our partnership with Hudson and all that we have achieved together, and are pleased that Hudson has found a perfect home with Joe’s Jeans to take the company to the next stage in its development.”
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