MILAN — As expected, Plaid Clothing Group confirmed Monday it has executed a letter of intent to acquire 100 percent of GFT’S capital stock for $236.8 million (400 billion lire).
In a statement released through a Plaid spokesman in Milan, the company said it has acquired an “exclusive right” to buy the troubled Turin-based designer apparel maker, contrary to reports that the exclusivity clause had been removed from the deal.
“This means that no one else can come in and make a counter offer,” the spokesman said. When asked if the accord is also binding, he said, “There is no reason why at this point Plaid would want to withdraw.”
Plaid and GFT “have agreed to use their best efforts to close the acquisition by June 30, 1994,” the statement said.
According to sources, due diligence is “proceeding well,” and Plaid’s offering price isn’t expected to change upon its completion.
As reported, the terms of the letter of intent allow either Plaid or GFT to call off the deal under certain conditions if a definitive agreement has not been completed by May 15. Furthermore, the banks holding at least 95 percent of GFT’S debts must ratify the Plaid offer within 30 days.
The final deal is still contingent on Plaid’s ability to obtain financing, as reported, the statement said.
“The combination of Plaid and GFT will result in the world’s premiere clothing company,” said Omar Z. Al Askari, chairman of Plaid.
The statement also quoted Clemente Signoroni, managing director of GFT: “The strategic combination of GFT and Plaid creates the opportunity to develop a global reach in men’s and women’s apparel. Our combined experience and expertise will give the group a strong leadership position.”
Plaid Clothing is a U.S.-based men’s wear manufacturer, privately owned by Mideast and U.S. investors.