09 Nov Global Brands Agrees to Acquire Planet Socks Assets
Global Brands agreed Nov.5 to acquire PS Brands hosiery business through a U.S. subsidiary for up to $140 million in a bid to become a top player in the licensed sock market in North America.
Under an asset purchase agreement, GBG USA agreed to pay $33.6 million in cash up front and up to an additional $96.4 million in earn out payments for the business, which designs, develops, sources, imports, markets, sells and distributes licensed, branded and private label hosiery products. Global Brands, which maintains dual headquarters in Hong Kong and New York City, is a global brand licensing and management company that owns the Spyder and Frye brands.
PS Brands, which does business as “Planet Sox,” is recognized as a leading hosiery company with a number of licensed and owned brands across multiple categories including socks, legwear, baby shoes and related accessories. Its portfolio of licenses includes Disney, Nickelodeon, Hasbro, Fila, Head Sport, Kate Spade, Nanette Lapore, and Kensie. It distributes products across multiple channels of distribution, including mid-tier and better department stores, mass market accounts, athletic footwear chains, specialty stores and off-price retailers.
The company generated sales of $100.2 million and profits before and after tax of approximately $8.7 million and $8.6 million respectively in calendar 2014, based on unaudited management accounts. The corresponding figures for 2013 were sales of $83.4 million and profits before and after tax of approximately $7.9 million and $7.8 million, respectively.