Randa Accessories Completes its Acquisition of Swank
NEW YORK, May 17, 2012 /PRNewswire/ -- Randa Accessories Leather Goods LLC, a leading manufacturer, distributor and marketer of lifestyle accessories, has completed its acquisition of Swank, Inc. (OTC: SNKI), a leading designer and marketer of men's and women's belts and men's leather accessories, jewelry and suspenders. The purchase price was $10.00 a share, or total consideration of approximately $57.3 million.
Swank will continue to operate as a wholly-owned subsidiary of Randa, led by John Tulin, Swank's Chairman and Chief Executive Officer. Mr. Tulin will report to Jeffrey 0. Spiegel, Randa's Chief Executive Officer.
Jeffrey Spiegel stated, "We are very pleased that Swank is joining our family of companies. The strategic benefits of this combination are clear and we are happy to have provided terms that were financially attractive for Swank's stockholders. Randa continues to invest in the future of our company, our associates, and our retail and brand partners. This acquisition provides additional classifications, points-of-sale, brands, and scale to our growing business."
John Tulin said, "I am pleased to announce the closing of the transaction, as it has delivered to our stockholders significant value and a substantial cash premium for their shares. We look forward to a long and mutually rewarding relationship with the Randa team."
Swank's stockholders who hold stock certificates will receive letters of transmittal with instructions for sending in their shares to American Stock Transfer & Trust Company, as paying agent, to receive the $10.00 per share merger consideration. The exchange of shares held by stockholders who hold shares in "street name" through a bank, broker or other nominee should be handled through the bank, broker or other nominee.
Financo, Inc. was the financial advisor to Swank and Troutman Sanders LLP served as legal advisor to Swank in connection with this transaction. Peter J. Solomon Company was Randa's financial advisor and Olshan Grundman Frome Rosenzweig & Wolosky LLP served as legal advisor to Randa in connection with the transaction.
Randa Accessories is the global leader in lifestyle accessories and the world's largest men's accessories company. Collaborating with 75 leading brands, and 18,000 points-of-sale, Randa designs, manufactures, and markets men's belts, wallets, neckwear, small leather goods, luggage, backpacks, business cases, seasonal footwear, and gifts. From its origins as a neckwear company over a century ago, Randa now provides fashion, lifestyle, luxury, and private branded products through retailers in all channels of distribution, worldwide. More information is available at www.randa.net.
About Swank, Inc.
Swank is engaged in the importation, sale and distribution of men's and women's belts and men's leather accessories, suspenders, and jewelry. Swank distributes its products to retail outlets throughout the United States and in numerous foreign countries. These products are distributed under the names "Kenneth Cole", "Tommy Hilfiger", "Nautica", "Geoffrey Beene", "Guess?", "Tumi", "Buffalo David Bitton", "Chaps", "Donald Trump", "Pierre Cardin", "US Polo Association", and "Swank". Swank also distributes men's jewelry and leather items to retailers under private labels.
Forward Looking Statements
Note: This press release may contain forward-looking statements that are being made pursuant to the Private Securities Litigation Reform Act of 1995, which provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information so long as those statements are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the statement. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from those described or implied in the forward-looking statements, including, but not limited to, general economic and business conditions; competition in the accessories markets, potential changes in customer spending; acceptance of product offerings and designs; the variability of consumer spending resulting from changes in domestic economic activity; any significant variations between actual amounts and the amounts estimated for those matters identified as critical accounting estimates, as well as other significant accounting estimates made in the preparation of financial statements; as well as geopolitical concerns. Accordingly, actual results may differ materially from such forward-looking statements. You are urged to consider all such factors. Swank and Randa assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Contact for Randa Accessories: