WARRENDALE, Pa., Aug. 24 /PRNewswire/ -- Dylex Limited and
American Eagle Outfitters, Inc. (Nasdaq: AEOS) announced today that they have
entered into a Letter of Intent to sell the assets of Dylex's Thriftys,
Braemar and National Logistics Services divisions to American Eagle Outfitters
Inc. for consideration consisting of Cdn. $110 million (U.S. $74 million)
cash. The parties are proceeding with the negotiation of a definitive
purchase agreement. The purchase will be completed as soon as practicable
following execution of the purchase agreement and obtaining of all required
approvals.
Thriftys is one of the largest Canadian specialty retailers of casual
apparel targeted at young teens, sold under its exclusive private-label,
Bluenotes(R). Thriftys operates 115 stores in major shopping malls, the
majority of which are in Ontario, and had fiscal 1999 sales of Cdn.
$147 million. Braemar operates 57 women's ready-to-wear clothing stores.
National Logistics Services is a warehouse and distribution operation.
George Kolber, Vice Chairman and Chief Operating Officer of American Eagle
Outfitters, commented, "We are very excited about the possibility of acquiring
the strong Thriftys'/Bluenotes operations. It is our plan to convert some of
the Braemar stores to Bluenotes and the remaining to American Eagle Outfitters
Stores. This transaction provides us with a unique opportunity to quickly
expand American Eagle Outfitters into Canada. We believe that the acquisition
will have no material impact on fiscal 2000 earnings and should be accretive
beginning in fiscal 2001."
William Anderson, Chairman of Dylex Limited noted, "This is a favorable
transaction for Dylex and is in the best interest of our shareholders,
employees and other stakeholders."
Dylex Limited is one of Canada's leading specialty retailers, offering
mainstream fashions and family merchandise under its well-known operating
divisions: BiWay, Braemar, Fairweather, Labels and Thriftys.
American Eagle Outfitters, Inc. is a specialty retailer of all-American,
casual apparel, accessories, and footwear for men and women between the ages
of 16 and 34. The Company designs, markets, and sells its own brand of
versatile, relaxed, and timeless classics like American Eagle jeans, cargos,
and T-shirts, providing high quality merchandise at affordable prices. The
Company currently operates 519 stores in 46 states and the District of
Columbia.
To access American Eagle Outfitters' recorded commentary, please call
724-779-6601.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward-looking statements, which represent the
companies' expectations or beliefs concerning future events, specifically
regarding the proposed transaction. All forward-looking statements involve
material risks and uncertainties and are subject to change based on factors
beyond the parties' control. Such factors include, but are not limited to
those risks described in American Eagle's filings with the Securities and
Exchange Commission and the risk that we may not enter into the definitive
agreement or close the transaction. The transaction will be subject to
customary terms and conditions, including the receipt of all required
approvals. Accordingly, American Eagle's future performance and financial
results may differ materially from those expressed or implied in any such
forward-looking statements. American Eagle does not undertake to publicly
update or revise its forward-looking statements even if experience or future
changes make it clear that any projected results expressed or implied therein
will not be realized.
SOURCE American Eagle Outfitters, Inc.; Dylex Limited
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Related links:
http://www.ae-outfitters.com
Company News On-Call:
http://www.prnewswire.com/comp/104763.html or fax,
800-758-5804, ext. 104763
CONTACT:
William J. Anderson of Dylex Limited,
416-586-7502, or Laura Weil of American Eagle Outfitters,
724-776-4857
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