Emerisque In the Press
The latest articles in the press:
Asian Firms making push for M&A deals - by Vicki M. Young, www.sagellc.com, 2010
Separates and unmatched outfits are a hallmark of today’s working wardrobe. The next wave of M&A activity could come out of the East.
Sluggish growth and economic challenges facing U.S. and European buyers on the home front are opening the door for Asian firms to take the lead in merger and acquisitions deals. These companies are on the hunt for major Western labels as they shift from being simply manufacturers to brand owners — and they have the deep pockets to fulfill their global ambitions.
There are currently two types of Asian buyers — both of which want to better understand the American market. The first group seeks brand opportunities for growth in the U.S. with the goal of bringing those labels overseas. The second wants transactions that enhance sourcing, production and occasionally product category opportunities to help corner the market in a given sector.
While only a few deals have occurred so far, observers believe it’s only a matter of time before Asian firms become more aggressive as buyers. Part of that belief stems from the fact that Asian manufacturing companies face pressures of their own: Overcapacity and rising costs are forcing them to look to other avenues for growth.
While Chinese firms in the first half of 2010 spent more time eyeing the possibilities, there was an increase in activity by yearend. Last week Chinese men’s wear giant Trinity Ltd. inked a deal to acquire Parisian fashion house Cerruti in a cash deal capped at 53 million euros, or $69.6 million at current exchange. Trinity, part of Li & Fung, already holds the license to distribute Cerruti 1881 men’s wear in Greater China.
Earlier this month, China’s Bright Food Group was moving closer to a deal to acquire GNC Holdings, the operator of the vitamin chain GNC. Sources said the deal, if it went through, could be close to $3 billion. GNC, which in September filed for a $350 million initial public offering, is owned by private equity firm Ares Management and the Ontario Teacher’s Pension Plan Board.
Ajay Khaitan, chief executive officer at U.K.-based investment firm Emerisque Brands, is among those currently on the prowl for brand-oriented acquisitions both here and abroad.
Emerisque Brands acquires MCS - 24 April 2013, Maria Cristina Pavarini
MCS Italia SpA, owner of the brand MCS We The People (former MCS Marlboro Classics), was acquired by global investor Emerisque Brands UK Limited (also known as Emerisque Brands). Through intermediate companies the acquisition of MCS – previously controlled by Permira fund and Marzotto family – was signed on 22 April 2013.
MCS is a major casualwear brand with 25 years of experience combining US lifestyle with Italian know-how.
The brand has recently embarked upon a re-branding project, with the aim to transform itself into a more contemporary apparel and accessory brand. MCS is now sold in 40 markets worldwide including: Italy, France, Eastern and Northern Europe, Hong Kong and the Middle East and is distributed through over 1,400 stores, including 300 negozi monobrand stores and shop-in-the-shops – read more here on sportswearnet.com.
Ajay Khaitan, co-founder Emerisque Brands and former president and CEO of Lee Cooper, another brand recently acquired by Emerisque Brands, commented: “We are very happy to collaborate with MCS and expect to further develop the company. MCS owns a distinguished and highly recognizable brand recalling the US’s rugged West, though refined and contemporary and able to grab the attention of contemporary consumers. Thanks to our own expertise in this market we are sure we can increase the brand’s presence through different distribution channels and in new high-growth international markets.”
Barack Obama’s tailor in bitter row over costs - 29 Jul 2009, By James Quinn, Wall Street Correspondent
$119m (£73m) buy-out of Hartmarx by Mayfair-based Emerisque brands has the potential to come undone following a dispute over costs.
Hartmarx, which made the tuxedo which President Obama wore to his inauguration balls on the evening of January 20, filed for Chapter 11 bankruptcy just three days later.
After months of legal tussles with lenders led by Wells Fargo, Emerisque, which is working with SKNL North America, won approval to buy substantially all of Hartmarx’s assets following a decision by an Illinois bankruptcy judge on June 26.
At the time, Emerisque released a statement saying that the transaction should close on July 7, but, as of Wednesday, the deal was still not complete, as a bitter row waged between Hartmarx’s advisers about who should pay the costs to wind down the parts of the business that are not subject to Emerisque’s takeover.
According to the New York Post, the row erupted between Emerisque and Hartmarx’s advisers over the costs, with financial restructuring experts FTI Consulting and law firm Skadden Arps maintaining that it is usual practice for the buyer to foot such costs. Emerisque, however, is arguing that were it to do so, it would take the cost of the deal above the agreed price.
If the row continues, it has the potential to knock the deal off the draper’s table altogether, returning Hartmarx to the bankruptcy courts.
Before news of the alleged row emerged, however, the pair seemed well suited. Emerisque is run by retail private equity specialist Ajay Khaitan. The firm was founded five years ago, and specialises in retail turnarounds, with past successes among Mr Khaitan and other senior staff including Ben Sherman, Puma and Lee Cooper…