EX-99.1
3
v092505_ex99-1.htm
Unassociated Document
CONTACT:
Bruce
Zurlnick
Leigh
Parrish/Caren Barbara
Senior
Vice President and
Media
Contact: Samantha Cohen
Chief
Financial Officer
Financial
Dynamics
Finlay
Enterprises, Inc.
(212)
850-5600
(212)
808-2800
FOR
IMMEDIATE RELEASE
FINLAY
COMPLETES ASSET PURCHASE OF BAILEY BANKS & BIDDLE
New
York, NY, November 12, 2007 -- Finlay Enterprises, Inc. (NASDAQ:
FNLY)
,
a
leading retailer of fine jewelry operating luxury stand-alone specialty jewelry
stores and licensed fine jewelry departments in department stores throughout
the
United States, announced today that it has completed the asset purchase of
the
Bailey Banks & Biddle division of Zale Corporation. Bailey Banks &
Biddle operates a chain of 70 stand-alone retail stores in 24 states with a
focus on the luxury market, offering jewelry and watches under high-end name
brands.
The
asset
purchase price of $200 million was financed through a new $550 million five-year
revolving credit facility provided by GE Corporate Lending, which replaced
the
Company's existing credit facility. GE Capital Markets, Inc. is acting as sole
bookrunner for the financing. A post closing inventory adjustment of
approximately $25 million will also be financed through the new revolving credit
facility.
As
previously disclosed, the acquired assets are expected to generate sales of
approximately $280 million to $300 million in the fiscal year ending January
31,
2009, which will be the first full year of operation following the completion
of
the transaction. After taking into account certain synergies of the transaction,
the Company expects the acquisition to be accretive to fiscal 2008 earnings
in
excess of $.20 per diluted share, based on estimated EBITDA in the range of
$23
million to $27 million. Additional financial information regarding the Bailey
Banks & Biddle contribution for the fourth quarter will be provided in the
Company's third quarter earnings announcement and conference call scheduled for
November 27, 2007.
Arthur
E.
Reiner, Chairman and Chief Executive Officer of Finlay Enterprises, Inc.,
commented, "We are pleased to have completed the purchase of Bailey Banks &
Biddle as it represents a significant milestone for our Company and a major
step
forward in executing on our stated strategy to grow and diversify our business
through acquisitions. The transaction nearly triples the number of stand-alone
jewelry stores that we operate and significantly expands our presence in the
luxury market, which continues to be one of the most attractive segments of
the
jewelry business".
Finlay
Enterprises, Inc., through its wholly-owned subsidiary, Finlay Fine Jewelry
Corporation, is one of the leading retailers of fine jewelry operating luxury
stand-alone specialty jewelry stores and licensed fine jewelry departments
in
department stores throughout the United States and achieved sales of $761.8
million in fiscal 2006. The number of locations at the end of the third quarter
of fiscal 2007 totaled 729, including 33 Carlyle and five Congress specialty
jewelry stores.
This
release may contain forward-looking statements, which are made pursuant to
the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are based on Finlay's current expectations and
beliefs, are not a guarantee of future performance and involve known and unknown
risks, uncertainties and other factors. Actual results, performances or
achievements may differ materially from those contained in, or implied by,
these
forward-looking statements, depending upon a variety of factors including,
in
particular, the risks and uncertainties described in Finlay's filings with the
Securities and Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. We undertake no obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
The
inclusion of any statement in this release does not constitute an admission
by
Finlay or any other person that the events or circumstances described in such
statement are material.
#
#
#

EX - 99 . 1 3 v092505 _ ex99 - 1 . htm Un associated Document CONTACT : Bruce Zurlnick Leigh Parrish / Caren Barbara Senior Vice President and Media Contact : Samantha Cohen Chief Financial Officer Financial Dynamics Finlay Enterprises , Inc . ( 212 ) 850 - 5600 ( 212 ) 808 - 2800 FOR IMMEDIATE RELEASE FINLAY COMPLETES ASSET PURCHASE OF BAILEY BANKS & BIDDLE New York , NY , November 12 , 2007 -- Finlay Enterprises , Inc . ( NASDAQ : FNLY ) , a leading retailer of fine jewelry operating luxury stand - alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States , announced today that it has completed the asset purchase of the Bailey Banks & Biddle division of Zale Corporation . Bailey Banks & Biddle operates a chain of 70 stand - alone retail stores in 24 states with a focus on the luxury market , offering jewelry and watches under high - end name brands . The asset purchase price of $ 200 million was financed through a new $ 550 million five - year revolving credit facility provided by GE Corporate Lending , which replaced the Company 's existing credit facility . GE Capital Markets , Inc . is acting as sole bookrunner for the financing . A post closing inventory adjustment of approximately $ 25 million will also be financed through the new revolving credit facility . As previously disclosed , the acquired assets are expected to generate sales of approximately $ 280 million to $ 300 million in the fiscal year ending January 31 , 2009 , which will be the first full year of operation following the completion of the transaction . After taking into account certain synergies of the transaction , the Company expects the acquisition to be accretive to fiscal 2008 earnings in excess of $ .20 per diluted share , based on estimated EBITDA in the range of $ 23 million to $ 27 million . Additional financial information regarding the Bailey Banks & Biddle contribution for the fourth quarter will be provided in the Company 's third quarter earnings announcement and conference call scheduled for November 27 , 2007 . Arthur E . Reiner , Chairman and Chief Executive Officer of Finlay Enterprises , Inc . , commented , " We are pleased to have completed the purchase of Bailey Banks & Biddle as it represents a significant milestone for our Company and a major step forward in executing on our stated strategy to grow and diversify our business through acquisitions . The transaction nearly triples the number of stand - alone jewelry stores that we operate and significantly expands our presence in the luxury market , which continues to be one of the most attractive segments of the jewelry business " . Finlay Enterprises , Inc . , through its wholly - owned subsidiary , Finlay Fine Jewelry Corporation , is one of the leading retailers of fine jewelry operating luxury stand - alone specialty jewelry stores and licensed fine jewelry departments in department stores throughout the United States and achieved sales of $ 761.8 million in fiscal 2006 . The number of locations at the end of the third quarter of fiscal 2007 totaled 729 , including 33 Carlyle and five Congress specialty jewelry stores . This release may contain forward - looking statements , which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . Such forward - looking statements are based on Finlay 's current expectations and beliefs , are not a guarantee of future performance and involve known and unknown risks , uncertainties and other factors . Actual results , performances or achievements may differ materially from those contained in , or implied by , these forward - looking statements , depending upon a variety of factors including , in particular , the risks and uncertainties described in Finlay 's filings with the Securities and Exchange Commission . Readers are cautioned not to place undue reliance on these forward - looking statements , which speak only as of the date hereof . We undertake no obligation to release publicly any revisions to these forward - looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . The inclusion of any statement in this release does not constitute an admission by Finlay or any other person that the events or circumstances described in such statement are material . # # #