Tarrant Apparel Buys Needletex

Tarrant Apparel Group, a leading provider of private label casual apparel, purchased the assets of Needletex, Inc., owner of the Jane Doe brand. Although financial terms of the transaction were not disclosed, Tarrant expects the acquisition to be accretive to earnings in the current fiscal year.

In conjunction with this acquisition, Tarrant will form a new company, Jane Doe International LLC (JDI) which will be 51% owned by Tarrant and 49% owned by Needletex, Inc. The existing management team of Needletex will remain intact and will continue to manage all aspects of development and operations. In 1999, Needletex generated approximately $20 million in sales. The company is headquartered in Los Angeles while its garments are manufactured in various locations throughout the Far East.

Patrick Bensimon, President of Needletex, stated, "We are very excited to have Tarrant Apparel Group as a strategic partner. JDI offers great opportunities to utilize both Tarrant's and Needletex's expertise to fully develop the equity of the Jane Doe brand."

JDI will source garment production directly from Tarrant's Hong Kong operations and will utilize Needletex's Los Angeles based design and marketing resources. Needletex's Far East sourcing network will be absorbed into Tarrant's operations.

Todd Kay, Vice Chairman and President of Tarrant Apparel, stated, "The development of JDI represents an excellent opportunity for Tarrant to leverage its existing infrastructure. Through Jane Doe we will readily expand our product offerings and Hong Kong sourcing network. In addition, with access to Tarrant's capital, distribution and production resources, JDI will be able to more quickly enhance its design and marketing capabilities."

Edited by Anndrea Vorobej