California-based Johnny Was, founded in 1987 and known for bohemian-inspired women’s fashion, was acquired by Oxford Industries for $270 million.
Using existing cash on hand as the primary source of funding, the remaining approximately $100 million was borrowed for the transaction using the Oxford Revolving Credit Facility.
Oxford Industries said it expects to pay off all debt within a year of the transaction.
Johnny Was CEO Rob Trauber will retain his position at the company as part of the deal.
Since its founding in 1987, Johnny Was has been inspired by a bohemian style that embraces the classic California lifestyle. Johnny Was continues to defy trends with finely crafted apparel and one-of-a-kind accessories.
“We are delighted to be part of Oxford and its portfolio of great lifestyle brands. We believe Oxford is the perfect home for Johnny Was because our goal is to: “They have a proven track record of working with brand leadership to optimize investment, performance and long-term brand management to drive growth.”
Owners Tommy Bahama and Lily Pulitzer thanked the team at Johnny Was for helping the brand achieve the incredible milestone, saying they have “an attractive business model and diverse portfolio. I believed it had to be in Johnny Was’s portfolio because of its ‘customer base’.
With the addition of Johnny Was, the business has become even more diversified in terms of fashion, price, season and geographic location.Oxford will be open in the third quarter of 2022 in line with the news that Johnny Was has been acquired. and announced that it was raising its full-year guidance.
Third-quarter earnings are now expected to be between $295 million and $310 million, with adjusted earnings per share of $1.10 to $1.30. For the full year, the company expects revenues of $1.375 billion to $1.45 billion and adjusted earnings per share of $10.25 to $10.60.