Global intimates company Bendon buys Gazal brands

11th October 2011

Global intimates company Bendon buys Gazal brands

International lingerie company Bendon has today unveiled plans to purchase three flagship lingerie brands from ASX listed apparel company Gazal.

Bendon has signed a deal to purchase the brands: Lovable, Davenport and Kissed by Lovable.

This latest move by Bendon follows the recent announcement of the merger with independent lingerie company Pleasure State.

The acquisition will increase Bendon’s intimate apparel brand portfolio from eight to 11.

Bendon’s CEO Justin Davis-Rice says Bendon has seized the opportunity to expand its portfolio of intimate apparel brands and remains acquisitive.

“Bendon is in the best position to take advantage of consolidation opportunities in the swimwear and intimate apparel market.”

Mr Davis-Rice says despite the continuing international economic downturn, the last few years have been a busy time of growth and planned expansion for Bendon.

“The decision to bring the additional brands into our portfolio reflects the strength and confidence we have in Bendon’s current growth plans,” says Mr Davis Rice.

Gazal’s CEO Michael Gazal says Lovable, Kissed by Lovable and Davenport are great brands and Gazal is pleased that they will have a new home in a specialist intimate apparel business such as Bendon. In addition to these three brands, the sale to Bendon also includes the Crystelle and Fineform trademarks.

The sale of these brands along with Gazal’s other recent divestments will result in fewer businesses and a simpler structure going forward. This will allow management to focus their efforts on driving further growth from its core continuing operations.

The transaction value of assets sold to Bendon, which include all intellectual property, goodwill, selected fixed assets and selected inventory were slightly below Gazal’s carrying values for those assets and the sale is not expected to have a material effect on Gazal Corporation's FY2012 earnings.

“I would like to thank all Gazal employees that have contributed to each of the brands being sold to Bendon and I wish everyone the very best of luck for the future,” says Mr Gazal.

“We are looking forward to welcoming the new members of our team from Gazal, it will be business as usual for us,” says Mr Davis-Rice.

Bendon expects to takes ownership of the Gazal brands from 14th October 2011.

About Gazal

• Based in Sydney and listed on the Australian Securities Exchange, Gazal is a leading apparel supplier and retailer of intimate apparel, business attire, workwear and schoolwear sold under licensed and company owned brand names such as Calvin Klein, Van Heusen, Bisley, Nancy Ganz, Bracks and Midford.

About Bendon

• Bendon is one of the world’s leading intimate apparel companies. Founded in 1947, Bendon’s international reputation and success is based on innovation, design expertise, superior infrastructure, leading-edge marketing and business leadership.

• Bendon currently offers eight lingerie brands including; Elle Macpherson Intimates, Stella McCartney Lingerie, Fayreform, Bendon Lingerie, Hickory, Pleasure State, Macpherson Men and Bendon Man.

• Elle Macpherson Intimates is stocked in many of the world’s top department stores including Bloomingdales (US), Harrods and Harvey Nichols (UK), Myer and David Jones (Australia) and Germany’s Galeries Lafayette and Ludwig Beck.

• Bendon offices are in Sydney, London, New York, Hong Kong with Bendon’s Head Office in Auckland.

ENDS

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