|Jones Apparel Receives Amended Offer from Fast Retailing to Acquire Barneys for $950 Million|
|NEW YORK, August 5, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Jones Apparel Group, Inc.
(NYSE: JNY; the "Company" and "Jones") today announced that, following a
number of discussions that the Company's advisors had on Friday, August 3,
2007 with advisors to Fast Retailing Co., Ltd. ("Fast Retailing") and with
advisors to Istithmar PJSC ("Istithmar") and its affiliates, Jones has
received an amended offer from affiliates of Istithmar to acquire Jones'
wholly owned subsidiary Barneys New York, Inc. ("Barneys") for $900 million in
cash and an amended offer from Fast Retailing to acquire Barneys for $950
million in cash.
In accordance with the terms of the Company's Stock Purchase Agreement with affiliates of Istithmar (the "Istithmar Agreement"), Jones has transmitted to affiliates of Istithmar a written notice containing the material terms of the amended Fast Retailing offer and expressing the Company's intention to accept the amended Fast Retailing offer. Jones will be entitled to terminate the Istithmar Agreement unless during the two business day period commencing on August 6, 2007, affiliates of Istithmar make an offer that the Company's Board of Directors determines in accordance with the Istithmar Agreement to be at least as favorable to Jones as the amended Fast Retailing offer. In the event that Jones were to terminate the Istithmar Agreement in order to accept the amended Fast Retailing offer, Jones would be required to pay an affiliate of Istithmar a termination fee of $22.7 million.
About Jones Apparel Group, Inc.
Jones Apparel Group, Inc. (www.jny.com), a Fortune 500 company, is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company also markets directly to consumers through our chain of specialty retail and value-based stores, and operates the Barneys New York chain of luxury stores. The Company's nationally recognized brands include Jones New York, Evan-Picone, Norton McNaughton, Gloria Vanderbilt, Erika, l.e.i., Energie, Nine West, Easy Spirit, Enzo Angiolini, Bandolino, Joan & David, Mootsies Tootsies, Sam & Libby, Napier, Judith Jack, Kasper, Anne Klein, Albert Nipon, Le Suit and Barneys New York. The Company also markets costume jewelry under the Givenchy brand licensed from Givenchy Corporation and footwear under the Dockers Women brand licensed from Levi Strauss & Co. Each brand is differentiated by its own distinctive styling, pricing strategy, distribution channel and target consumer. The Company primarily contracts for the manufacture of its products through a worldwide network of quality manufacturers. The Company has capitalized on its nationally known brand names by entering into various licenses for several of its trademarks, including Jones New York, Evan-Picone, Anne Klein New York, Nine West, Gloria Vanderbilt and l.e.i., with select manufacturers of women's and men's products which the Company does not manufacture. For more than 30 years, the Company has built a reputation for excellence in product quality and value, and in operational execution.
About Barneys New York, Inc.
Barneys New York, Inc. (www.barneys.com), a wholly owned subsidiary of Jones Apparel Group, Inc., is a luxury retailer with flagship stores in New York City, Beverly Hills, Chicago, Boston and Dallas. Barneys also operates two regional full-price stores, fourteen CO-OP Barneys New York stores, thirteen outlet stores and two semi-annual warehouse sale events.
Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding the Company's expected financial position, business and financing plans are forward-looking statements. The words "believes," "expect," "plans," "intends," "anticipates" and similar expressions identify forward-looking statements. Forward-looking statements also include representations of the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including:
A further description of these risks and uncertainties and other important factors that could cause actual results to differ materially from the Company's expectations can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, including, but not limited to, the Statement Regarding Forward-Looking Disclosure and Item 1A - Risk Factors therein, and in the Company's other filings with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such expectations may prove to be incorrect. The Company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact: Joele Frank and Sharon Stern
Joele Frank, Wilkinson Brimmer Katcher (212)355-4449
SOURCE Jones Apparel Group, Inc.
Joele Frank or Sharon Stern, both of Joele Frank, Wilkinson Brimmer Katcher,