International lingerie company Bendon has bought three new brands from Australian apparel group Gazal.
The deal signed by Bendon will see the company increase its intimate apparel portfolio from eight to 11 via the acquisition of former Gazal brands Lovable, Davenport and Kissed by Lovable.
The move also follows the recent announcement by Bendon that it will merge with independent lingerie company Pleasure State.
Bendon chief executive Justin Davis-Rice said the company had seized an opportunity to expand its portfolio of intimate apparel brands and remains acquisitive. Bendon will also buy the trademarks for Crystelle and Fineform brands as part of the sale, which is expected to complete by October 14.
“Bendon is in the best position to take advantage of consolidation opportunities in the swimwear and intimate apparel market,” he said.
“The decision to bring the additional brands into our portfolio reflects the strength and confidence we have in Bendon's current growth plans.”
Gazal chief executive Michael Gazal said the sale of the three brands along with Gazal’s other recent divestments would result in fewer businesses and a simpler structure going forward which will allow management to focus their efforts on driving further growth from its core continuing operations.
“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. We are looking forward to welcoming the new members of our team from Gazal, it will be business as usual for us,” he said.
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.