Wiseman said Varvatos “can be a really big and important apparel brand in this country and we’re discussing with [the designer] how we can get it there.”
The merger makes Nautica a wholly owned subsidiary of VF. Nautica’s stockholders will receive $17 cash per share from VF. The firm also completed the purchase of David Chu & Co.’s rights to receive 50 percent of the net royalty income from licensing the Nautica trademark.
VF said the acquisition could add profits of 5 cents to 8 cents a share this year. Accordingly, overall earnings are slated to rise by 5 to 7 percent compared with the income of $3.24 created by ongoing operations in 2002.
Nautica could add at least 10 cents a share to the firm’s 2004 earnings.