Isaacs seeks to sell shares 83-year-old maker of sportswear to offer 39% of its stock

SEC approval sought

City firm hopes sale of 3.8 million shares will net $45.4 million


October 08, 1997|By Sean Somerville | Sean Somerville,SUN STAFF Bloomberg News contributed to this article.

I. C. Isaacs & Co. Inc., an 84-year-old Baltimore-based clothing designer and manufacturer that employs about 75 people here, plans to sell 39 percent of its common stock through an initial public offering, according to records filed yesterday with federal regulators.

The company makes men's and women's sportswear, selling clothing under the Boss and Beverly Hills Polo Club brands.

I. C. Isaacs, which had net sales of $119 million last year, maintains a plant on Bank Street.

The terms of the stock sale call for Isaacs to offer 3.8 million common shares at $12 to $14 each.

Based on 9.8 million shares outstanding after the offering, the company would have an initial market value of as much as $137.2 million.

Isaacs expects the stock sale to raise $45.4 million after expenses, assuming an offering price of $13 a share.

The company would devote $20 million to the repayment of debt and as much as $20.4 million to distributions to existing shareholders in connection with a change in corporate tax status.

Robert Arnot, 49, who has served as the company's chairman since 1991, owns 671,688 shares, which will equal a 6.85 percent stake after the initial public offering.

According to the registration statement filed yesterday with the Securities and Exchange Commission, Isaacs' net income rose to $4.6 million during the first six months of this year from $1.8 million during the same period in 1996.

Net sales rose to $77.7 million during the first half of 1997 from $51.9 million in the comparable 1996 period.

The IPO comes at a time when little remains of Baltimore's garment industry.

London Fog closed its Northwest Baltimore plant -- its last U.S. plant -- in June.

Robinson-Humphrey Co. and Legg Mason Wood Walker Inc. plan to underwrite the stock sale for Isaacs, which is going to have its shares trade on the Nasdaq market under the symbol ISAC.

Pub Date: 10/08/97

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.