Waverly brand to NexCen NexCen also returning Bill Blass to home
Jerry Epperson -- Furniture Today, March 14, 2007
New York – NexCen Brands has entered into a definitive agreement to acquire the Waverly brand from F. Schumacher & Co.
NexCen will pay $36.75 million in cash and issue 50,000 warrants priced at closing to acquire the Waverly brand and cancel an existing right of first refusal. NexCen expects to hire some design, marketing and licensing personnel to continue the business of Waverly, the company said in a statement.
NexCen estimates that the Waverly brand will generate approximately $8 million in royalty revenue and approximately $.07 cents per share of incremental EPS in the first 12 months following the acquisition. Assuming the acquisition is completed by the end of April, NexCen estimates the Waverly brand will contribute approximately $.04 per share of incremental EPS in the current fiscal year.
Robert W. D’Loren, president and ceo of NexCen said “Waverly provides us with a leading presence in the home design sector. Waverly has an outstanding team of home products designers and licensing professionals that can excel in our operating structure by supporting and growing the Waverly brand. NexCen can build upon their expertise and the current Waverly licensee base to more fully develop our Bill Blass home business and future brands that we intend to acquire.”
Among the Waverly licensees is P/Kaufmann, which signed the Waverly decorative fabric license in October 2006. P/Kaufmann has hired some of the Waverly sales, marketing and design staff, a move that will be completed during the transition period this year, said Ron Kaufmann, ceo of P/Kaufmann.
Kaufmann noted, “We are pleased that NexCen is fully committed to furthering the value of this brand.”
The Bill Blass brand is making a reentry into the home furnishings field after several years’ absence. NexCen has signed a license with Town & Country. The initial home line will consist of tabletop, linens and bedding, according to NexCen.
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