Randa Accessories announced today that it has entered into a definitive agreement to acquire 100 percent of Haggar Clothing Co. The transaction is expected to close within 45 days, funded through a combination of cash on hand and committed financing from Wells Fargo Bank, National Association and JPMorgan Chase Bank, N.A. Revenues for the combined companies will exceed $1 billion this year.
Randa, a privately-held company founded in 1910, produces belts, wallets, headwear, slippers, luggage, neckwear, jewelry, and other accessories under 50 brands, including Levi’s, Tommy Hilfiger, Columbia Sportswear, Dickies, and Kenneth Cole. It distributes its products globally through more than 20,000 stores and employs over 4,000 associates at 26 offices in 10 countries.
Since its beginnings in a one-room office in Dallas in 1926, Haggar Clothing Co. has grown from a manufacturer of men’s fine dress pants and slacks into one of the most recognized apparel brands in the market. Haggar also owns Montreal-based Tribal, the largest women’s sportswear supplier to the specialty boutique market in North America, with over 2,400 accounts.
“The acquisition of Haggar is an important waypoint on our strategic journey,” said Jeffrey Spiegel, CEO of Randa Accessories. “Following our Moats, Boats & Bridges strategic roadmap, this acquisition allows Randa to bring its existing expertise to adjacent brands, channels of distribution, and product classifications. This transaction brings together two successful, financially strong, and complementary businesses to better serve our retail and brand partners, our associates, and our consumers. We believe that brands matter– and Haggar and Tribal are highly relevant brands in their respective markets.”
“Randa is the ideal strategic partner for Haggar because of the combined strengths of our two companies,” added Michael Stitt, Haggar CEO. “Jeff and his extraordinary leadership team add invaluable scale, resources, expertise, and marketing, in addition to retail partnerships. They align with our core values and high standards.”
In 1938, Haggar created the first ready-to-wear, finished bottom, pre-cuffed pant. During World War II, the company kept factories running 24 hours a day to supply over 10 million uniforms to the U.S. military. Haggar coined the word “slacks” to be worn during “slack time.” By the end of the decade, Haggar had become the largest producer of slacks in the world. In 1980, the company began producing sportcoats, vests, and Haggar “Custom Fit” suits, which allowed customers to purchase jackets and pants separately, creating a new menswear category: suit separates. Haggar has over 80 branded brick-and-mortar retail locations and a dedicated direct-to-consumer ecommerce platform. Its products are sold in over 10,000 stores throughout North America.
“Today, understanding and applying consumer data is an essential tool,” Spiegel added. “The addition of Haggar’s retail stores and e-commerce business will supply us with invaluable insight into our consumers’ evolving expectations and path-to-purchase. This information will provide a powerful and actionable lens for our retail and brand partners, as well as our consumers.”
Haggar will remain in Dallas, managed by Haggar’s current leadership team. “This is a healthy company, led by a strong and respected team of talented professionals,” said Spiegel. “We intend to provide this extraordinary company with additional resources to drive our mutual success.”
Concludes David Katz, Randa’s EVP and chief marketing officer, “Randa views accessories as a gateway to building and expanding successful lifestyle brands. For many years Hermès made only horse saddles, Louis Vuitton made only trunks, Ralph Lauren made only ties, and Abercrombie sold fishing tackle. Today these companies are multi-classification lifestyle brands. This apparel acquisition is our gateway to greater success.”