TAGS--acquisition news this morning
LOS ANGELES--(BUSINESS WIRE)--August 11, 1999--Tarrant Apparel Group (Nasdaq:TAGS - news) today announced that it has entered into an agreement to purchase all of the outstanding stock of Grupo Famian, a privately- held apparel company located in Tehuacan, Mexico. Grupo Famian operates seven apparel production facilities which have the capacity to provide finished package production (i.e., cut, sew, launder, finish and pack) of 110,000 units per week. Terms of the acquisition were not disclosed.
The Famian transaction will initially enable Tarrant to control finished package production of about five million garments annually, with a wholesale value of approximately $65 million. The acquisition will be immediately accretive to earnings.
Mr. Gerard Guez, Chairman and Chief Executive Officer of Tarrant stated, ''Famian has been a preferred contractor for Tarrant since the inception of our Mexican sourcing operations, and has consistently provided us with quality products and reliable deliveries. This transaction complements our Mexican vertical integration strategy by allowing us to consolidate a large portion of apparel production, from cutting to sewing, laundering, finishing and packaging. Furthermore, this arrangement will allow us to produce finished products quickly and cost-effectively and therefore provide more timely delivery of goods to our customers.''
Tarrant Apparel Group serves both specialty retail and mass merchandise store chains by designing, merchandising, contracting for the manufacture of and selling casual, moderately-priced apparel, primarily for women, under private label.
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