Joe's Jeans is buying privately-held Hudson Clothing for $97.6 million, almost doubling its business and cutting the costs tied to making high-end jeans, the company said Monday in a statement.
"We expect to nearly double the size of our business, meaningfully increase our international and e-commerce penetration, and enhance our overall prospects for growth," Marc Crossman, CEO and president of Joe's Jeans, said in the statement. "Paramount to the combination is preserving the DNA of each existing company by retaining its employees and separate facilities."
It's the latest in a string of deals in the premium-denim market, which typically refers to jeans that cost $120 or more. In its latest annual report, Joe's listed Hudson among rivals including True Religion, Seven for All Mankind, Citizens of Humanity and J Brand.
In May, True Religion agreed to be taken private by TowerBrook Capital Partners LP for about $835 million. Last year, Fast Retailing, the Japanese owner of Uniqlo, paid $290 million for an 80% stake in J Brand.
Shares of Joe's, which most recently made $118.6 million in annual sales, closed today at $1.86 each. The company has been warned by Nasdaq in the past that it could be delisted after trading below $1 for too many consecutive days.
Sapna Maheshwari is a business reporter for BuzzFeed News and is based in New York. Maheshwari reports on retail and e-commerce.
Contact Sapna Maheshwari at email@example.com.
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