The Children's Place, Inc. completed the acquisition of worldwide rights to Gymboree and Crazy 8 and other intellectual property from Gymboree Group, Inc.
April 03, 2019
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The Children's Place, Inc. (NasdaqGS:PLCE) entered into an asset purchase agreement to acquire the worldwide rights to Gymboree and Crazy 8 and other intellectual property from Gymboree Group, Inc. for $76 million on March 1, 2019. The consideration will be paid in cash. The purchase price is expected to be funded by cash on hand and borrowings under the Company’s revolving credit facility. The acquisition of the Gymboree Assets is subject to the approval of the United States Bankruptcy Court for the Eastern District of Virginia at a hearing scheduled for March 4, 2019 and other standard closing conditions. The acquisition has been approved by the United States Bankruptcy Court for the Eastern District of Virginia on March 4, 2019. The Children’s Place, Inc. overlap with nearly 70% of the approximately 800 Gymboree and Crazy 8 stores, all of which will complete their liquidation events and close within the next 60 days. The agreement to acquire the Gymboree and Crazy 8 IP and related assets will adversely impact adjusted net income per diluted share by approximately $0.75 as we make incremental investments to support the strategic opportunities for the brands and fund the acquisition. The Gymboree and Crazy 8 acquisition will have an adverse EPS impact of approximately $0.15 to $0.20. Michael Kollender, Derek Herbert, James Doak, Robert Schmidt, Perry McCarthy, David Faulkner, Jeff Hagen and JC Gibbons of Stifel Financial Corp. acted as the financial advisors to Gymboree Group, Inc.
The Children's Place, Inc. (NasdaqGS:PLCE) completed the acquisition of worldwide rights to Gymboree and Crazy 8 and other intellectual property from Gymboree Group, Inc. on April 4, 2019.
The Children's Place, Inc. is a childrenâs specialty apparel retailer in North America. It provides apparel, footwear, accessories, and other items for children and tweens. It designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell merchandise under The Childrenâs Place, Place, Baby Place, Gymboree, Sugar & Jade, and PJ Place brand names. Its segments include The Childrenâs Place U.S. and The Childrenâs Place International. The Childrenâs Place U.S. segment includes the United States and Puerto Rico-based stores. The Childrenâs Place International segment includes Canadian based wholesale business, as well as international franchisees. It serves the wardrobe needs of girls and boys (sizes 4-18), toddler girls and boys (sizes 6 months-5T), and baby (sizes 0-24 months). It operates over 613 stores throughout North America. Its merchandise is available online at www.childrensplace.com, www.gymboree.com, www.sugarandjade.com and https://www.pjplace.com.
The Children's Place, Inc. completed the acquisition of worldwide rights to Gymboree and Crazy 8 and other intellectual property from Gymboree Group, Inc.