Perry Ellis Poised to Acquire Gotcha
Miami-based apparel designer Perry Ellis International took one step further into the surf apparel realm this week when it announced plans to acquire Newport Beach, Calif.–based Gotcha International. The deal, which is set to close in January, will give Perry Ellis rights to Gotcha’s intellectual property license agreements worldwide and the company’s GirlStar and Gotcha brands.
Terms of the purchase agreement were not disclosed.
The latest addition to Perry Ellis’ youth lifestyle stable, Gotcha joins Original Penguin and Redsand. “Gotcha will benefit from Perry Ellis’ vast sourcing, design and marketing resources, as well as the expertise and infrastructure we have gained through Original Penguin and Redsand,” said George Feldenkreis, Perry Ellis’ chairman and chief executive.
Gotcha debuted in 1978 with a line of board shorts. In 1990 the company’s worldwide sales reached $150 million. The Girl- Star brand was launched in 1995 to take advantage of the growing junior sportswear market. Gotcha fell on hard times in 2002 and filed for Chapter 11 bankruptcy protection. The company emerged from bankruptcy in February 2004.
“Perry Ellis will assume all of our licenses and continue to work with our licensees,” said Donald Grier, president of Gotcha International. Starting with the Spring 2007 offerings, Perry Ellis will take over the design and marketing of the Gotcha brands.
Grier expects some of Gotcha’s executives will remain on staff after the acquisition has been finalized and said there are plans to merge Gotcha’s corporate office with those of Redsand in Irvine, Calif.
Perry Ellis reported record third-quarter fiscal 2006 results this week, citing a 37 percent increase in total revenues to a record level of $220 million. At press time the company’s stock was trading at $19.83 on the Nasdaq. —Erin Barajas
