Breaking News: Joe’s Jeans to buy Hudson Jeans

Breaking News: Joe’s Jeans to buy Hudson Jeans

Following on what might be the beginnings of a jeans buyout frenzy for 2013 (yes, this is premature) Joe’s Jeans has bought out premium denim maker Hudson Jeans for $97.6 million, as reported by the Wall Street Journal.

Joe’s has a had a mixed year reporting 8% year of year revenue growth, though showing a 17% net income slide due to higher costs that should be offset with new manufacturing initiatives. While Joe’s reported that growth in their low-margin, but highly-affordable Else brand was not enough to boost earnings.

The Hudson move expands their denim lineup while offering unique synergies and new retail channels. According to Yahoo! Finance “Joe’s CEO Marc Crossman said the deal will nearly double the company’s business, and allow it to expand its international and e-commerce presence”. Many industry experts have predicted increasing growth for high-end denim products and this deal may serve as further proof. It would appear that an expanded high-end line could provide just the needed juice for future growth. The deal should close by the end of August.

Read our previous article on TowerBrook’s $836 million buyout of True Religion here: http://www.trendboardnyc.com/breaking-news-true-religion-bought-for-836-mil/

Author Description

London

London is a Senior Editor and Co-Founder of trendboardnyc. He counts among his life's greatest accomplishments hiking to Machu Picchu and being able to play "Sweet Child O' Mine" on that Hello Kitty guitar (which he will one day own).

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