S Kumars Nationwide dips 5 pc on overseas acquisition move

MUMBAI: S Kumars Nationwide dipped five per cent on the Bombay Stock Exchange after the textile firm said it is in race, along with a London-based PE firm, to acquire bankrupt US suit-maker Hartmarx Corporation for 119 million dollars.

Shares of S Kumars Nationwide dipped 5.11 per cent to a low of Rs 35.25 on the BSE.

Yesterday, Hartmarx Corporation, whose clientele includes US President Barack Obama, said it had entered into an asset- purchase agreement with Emerisque Brands UK Ltd and SKNL North America, an arm of S Kumars Nationwide, for all of its assets.

On the National Stock Exchange, the scrip dipped 5.11 per cent to a low of Rs 35.30. Over 66.31 lakh shares changed hands on the bourses.

The US firm had last week filed motions with the Bankruptcy Court for the Northern District of Illinois.

Under the terms of the agreement, subject to court approval the buyer (S Kumars and Emerisque) will acquire substantially all of the assets for USD 70.5 million in cash and a junior secured note with a face value of USD 15 million. Also, it has agreed to assume certain liabilities of Hartmarx, estimated to be about USD 33.5 million.

Hartmarx is the largest maker of men's tailored clothing in the US and has made tuxedo, topcoat and suit that the 47-year-old Obama wore on his inauguration on January 20.