Nautica Enterprises Inc. announced today that it will acquire the luxury jean label Earl Jean Inc. in a cash and stock deal. Nautica is expected to pay approximately $45 million, plus stock and significant additional payments over time based on achieving certain levels at Earl Jean.
This move brings Nautica, a $700 million sportswear giant, into a younger market niche. Furthermore it expands its presence in the upscale specialty channel.
With its narrow product line and a sales volume of about $30 million, Earl Jean has been tightly focused on urban women, from teenagers in affluent families to professionals in the mid-30s.
Earl Jean founders, Benjamin Freiwald and his wife Suzanne Costas Freiwald, are expected to continue to operate the Business under Nautica's ownership.