Shares of Naked Brand soared over 50% on Wednesday after the fashion and lifestyle company announced that it had reached an agreement to combine with Bendon Limited, which makes intimate apparel and swimwear.
The newly merged company will see Naked and Bendon became wholly-owned subsidiaries of Naked Brand Group Limited or Holdco, which will begin trading under the same NAKD ticker. Naked shares were exchanged for Holdco shares at the rate of 1 Naked share for 0.2 Holdco shares.
Naked Brand is a North American-based company, while Bendon is based in New Zealand. This official merger comes after a few months of talks, with Naked Brand shareholders voting to approve the deal earlier this month.
“We are thrilled to have completed this business combination thereby creating a powerful portfolio of iconic innerwear, sleepwear, and swimwear brands,” Holdco’s newly appointed Executive Chairman and Naked’s CEO, Carole Hochman, said in a statement.
The newly formed company now boasts brands that include Heidi Klum Intimates, Bendon, Fayreform, Pleasure State, Lovable, Heidi Klum Swim, Naked, Hickory, Bendon Man, and Davenport. The company claims that its products are currently available at retail locations in 44 countries and online. Holdco’s offerings will also be sold at 61 Bendon retail stores in Australia and New Zealand.
The company’s innerwear, sleepwear, and swimwear brands can also be found at Macy’s (M - Free Report) , Nordstrom (JWN - Free Report) , and other retail and department stores, as well as on Amazon (AMZN - Free Report) .
“We believe this merger will enable the combined company to strengthen its global industry leadership and continue to drive growth over the long-term,” Holdco CEO Justin Davis-Rice said in a statement. “Through the use of the U.S. capital markets, we anticipate having financial flexibility to expand distribution networks and further develop our businesses as well as acquire complementary brands.”
NAKD’s trading volume had reached 2.4 million through early morning trading, which is well above the old company’s daily average volume of 282,131.
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