Vince completes acquisition of Rebecca Taylor, Parker

By

Robin Driver

Published
Nov 6, 2019

New York-based luxury apparel and accessories company Vince Holding Corp. announced on Tuesday that it has acquired contemporary womenswear brands Rebecca Taylor and Parker for a total cash consideration of $19.7 million.

 
The deal’s total price tag reflected the payoff of $19.2 million of outstanding debt obligations related to Rebecca Taylor and Parker’s credit facility and a further $0.5 million in compensation expenses. Vince funded the acquisition with cash through its own existing revolving credit facility.
 
Combined net sales for Rebecca Taylor and Parker were around $84 million in the last fiscal year. The brands’ products are sold in high-end department and specialty stores around the globe, and through their own branded e-commerce sites. Rebecca Taylor also runs six brick-and-mortar retail locations.

Vince sees the two brands as complementary businesses, as they occupy different ends of the contemporary fashion spectrum and there is little price overlap in their products. Through the acquisition, the company expects to be able to double its revenue over the next few years compared to its initial guidance of between $295 million and $305 million for fiscal 2019.

Looking to the future, the company has plans to accelerate the expansion of its two new brands’ international expansion. At Rebecca Taylor, more specifically, Vince will be aiming to drive growth in its direct-to-consumer business through initiatives focused on both brick-and-mortar stores and e-commerce. The company will also be seeking to develop the brand’s rental business, Rebecca Taylor RNTD.
 
“We are excited to be creating a diversified portfolio of highly recognized and distinct contemporary brands with this acquisition,” said Vince CEO Brendan Hoffman in a release. “We see opportunity to accelerate growth in each of these brands by implementing the Vince strategic playbook to build direct-to-consumer strategies, further expand brand awareness, and leverage core competencies through the sharing of best practices.”
 
The acquisition is expected to be dilutive to Vince’s fiscal 2019 earnings. The company intends to provide further details on the financial implications of the deal when it reports its third-quarter results.
 
Vince posted net income of $1.0 million, or $0.08 per diluted share, in the second quarter ended August 3, 2019, on net sales of $71.4 million, which represented a 13% increase from the prior-year period.