Differential Brands Group Inc. | $DFBG Stock | Shares Gap Sharply After $1.38B Licensing Deal


Differential Brands Group Inc. (NASDAQ: DFBG)


Shares of Differential Brands hit a record high of $6.46 on Wednesday.

The massive gain came after the apparel company announced the purchase of some of the North America businesses owned by Global Brands Group Holding Ltd.

Differential Brands expects to close the $1.38 billion all-cash transaction in the third quarter of calendar 2018.

Differential Brands expects to generate revenue of over $2.3 billion once the deal is approved.

Hong Kong-based Global Brands currently owns licenses to produce apparel for big-name brands, such as Calvin Klein, Disney, Michael Kors, Star Wars, Tommy Hilfiger, Frye, Buffalo and David Bitton in North America.

DFBG stock ended regular trading on Wednesday at $5.45, up $4.55, or 505.56%. The stock has lost nearly 54% for the past year.

Company Comments

Differential Brands Group Chairman William Sweedler, stated, “On behalf of the Board, I am thrilled that we were able to structure a transaction with the Fung family to acquire one of the leading branded consumer soft goods companies in North America with a world class management team led by Jason Rabin.

Jason and his team plan to invest significant capital into this Transaction, which will transform Differential into a large scale North American branded platform. Mr. Rabin has a proven track record of successfully growing numerous world class brands since inception. We are confident this Transaction will create tremendous value for our stockholders, as well as provide enhanced opportunities in North America for our brands and business partners,” Sweedler concluded.

The president of Global Brand Group North America, Mr. Said Rabin, also welcomed the move saying, “We are thrilled to join Differential Brands Group and lead our combined platform by leveraging our expansive infrastructure, distribution and sourcing networks to drive growth, and we look forward to working with the Differential management team and Tengram to help support the company’s growth as it capitalizes on promising market opportunities.”

Differential Brands Group Inc. Company Profile

Differential Brands Group Inc. designs, develops, sells, and licenses apparel accessories and products internationally.

The company operates under several brands names, such as Robert Graham, SWIMS, and Hudson. It segments are Retail and Wholesale segments.

Different Brands’ product line includes sweaters, sport shirts, T-shirts, knits, polos, shorts, denim jeans, outwear, bottoms, shoes, sport coats, swimwear, belts, shoes, and belts for men.

In addition, it offers small leather goods, neckwear, sun and eye glasses, dress shirts, tailored clothing, underwear, headwear, jewelry, loungewear, hosiery, and fragrances for women, men and kids.

The company distributes its products through Robert Graham full-price retail outlet stores, SWIMS brand stores, and Robert Graham catalogs.

Customers can also buy the products from its e-commerce websites, which include swims.com, hudsonjeans.com, and robertgraham.us.

Some of its competitors include Ralph Lauren, AG, Hugo Boss, Armani, Seven for All Mankind, Paige Premium Denim, Burberry, Rag and Bone, J Brand, Ted Baker, True Religion, and John Varvatos.

The company was founded in 1987 and its headquarters are located in Commerce, California. –Reuters