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IPO Report: Apparel Holding (Vince Holding) (VNCE)

By  +Follow November 21, 2013 3:38PM
Tickers Mentioned:

Apparel Holding (Vince Holding) (VNCE) is a prominent, high-growth contemporary apparel brand known for its modern, effortless style and everyday luxury essentials.

Nine other operating companies scheduled IPOs for this week.. The full IPO calendar can be found at IPOpremium.

Manager, Joint managers: Goldman Sachs, Baird, BofA Merrill Lynch, Barclays, JP Morgan,  Wells Fargo Securities.  Co-Managers: KeyBanc Capital Markets, Stifel, William Blair. S-1 filed November 12, 2013.

VNCE scheduled a $180 million IPO with a market capitalization of $681 million at a price range midpoint of $18, on the NYSE for Friday, November 22, 2013.


VNCE is a restructured new company from a company that has an accumulated deficit of almost $1 billion.  On the IPO VNCE will be a clean company paying the equivalent of normal corporate tax rates, will have $17 million in net worth, with only $175 million in long term debt.

There is a tax loss carryforward.  The new VNCE, however, will pay the old shareholders 85% of the tax savings, so for financial analysis purposes we assume VNCE is fully taxed.

For the September 2013 quarter VNCE showed strong growth in top line revenue, driven by

. An increase in the direct to consumer channel with comparable store sales growth of 16.5%,

. Opening of seven additional retail stores, and

. Increased ecommerce sales volume.  

Competitors vary across segment but include other fashion label platforms, including the Jones Group (JNY) , Fifth and Pacific (FNP) , PVH Corp (PVH) , VF Corporation (VFC) , G-III Apparel Group (GIII) and Perry Ellis.  For ratio comparisons see report for subscribers.

Valuation Ratios


Price /

Price /

Price /

Price /

% offered

annualizing July 6 mos

Cap (mm)





in IPO

Apparel Holding (Vince Holding) (VNCE)







Apparel Holding (Vince Holding) (VNCE)







   annualizing Sept qtr







The rating on VNCE is a buy.  See recent developments here.


Apparel Holding

Apparel Holding Corp. is currently a diversified apparel company that designs, manufactures, and markets a collection of fashion brands which include Vince, Rebecca Taylor, David Meister, Sag Harbor, My Michelle and XOXO, along with numerous private label businesses for major retailers.

AHChas four reportable segments which include (i) Vince, contemporary fashion apparel and accessories sold under the Vince® brand name; (ii) American Recreational Products (“ARP”), recreational apparel and products sold under Kelty, Sierra Designs, Ultimate Direction, Slumberjack, Wenzel and Isis brand names; (iii) Juniors, a collection of denim, dresses and sportswear labels sold under the Rewind, My Michelle and Jolt brand name as well as private label; and (iv) Moderate, moderately priced related separates and pants covering career and casual lifestyles sold through wholesale distribution and produced under private labels, as well as under the Sag Harbor and Briggs New York brands.

 After giving effect to the IPO Restructuring Transactions, Apparel Holding Corp. will be renamed Vince Holding Corp. and its assets, liabilities, and operations will consist solely of the Vince business. An investment in VNCE is an investment in the Vince business.

Vince is a prominent, high-growth (according to the SEC filing) contemporary apparel brand known for its modern, effortless style and everyday luxury essentials.

The Vince brand was founded in 2002 with a collection of stylish women’s knits and cashmere sweaters that rapidly attracted a loyal customer base drawn to the casual sophistication and luxurious feel of its products.

Over the last decade, Vince has generated strong sales momentum and has successfully grown to include a men’s collection in 2007, expanded denim, leather and outerwear lines in 2010 and women’s footwear, which was launched through a licensing partnership in 2012.

VNCE believes that it will achieve continued success by expanding its product assortment and distributing this expanded product assortment through its premier wholesale partners in the U.S. and select international markets, as well as through its growing number of branded retail locations and on its e-commerce platform.

Historicaly VNCE sales are stronger the fall and holiday seasons.


Apparel Holding Corp. was formed to hold the assets and liabilities of Kellwood Company in connection with the February 2008 acquisition of Kellwood Company by affiliates of Sun Capital Partners, Inc. (“Sun Capital”).

In September 2012, Kellwood Company transferred the assets and liabilities of the Vince business to Vince, LLC in anticipation of this offering. Immediately prior to the consummation of this offering, affiliates of Sun Capital will engage in a series of transactions pursuant to which they will establish new corporate entities that will retain all of the non-Vince businesses after this offering.


AHC’s competitors vary across segment but include other fashion label platforms, including the Jones Group, Fifth and Pacific, PVH Corp., VF Corporation, G-III Apparel Group, Ltd. and Perry Ellis.

5% stockholders

Sun Cardinal, LLC and SCSF Cardinal, LLC, affiliates of Sun Capital.

Use of proceeds

VNCE expects to net $159 million from its IPO. Proceeds are allocated as follows:

retain $5.0 million of the net proceeds from this offering for general corporate purposes.

use the remaining $154 million of net proceeds from this offering, together with net borrowings of $169.5 million under VNCE’s new term loan facility, to repay the Kellwood Note Receivable, which would then total $323.5 million.

The final amount of the Kellwood Note Receivable will be adjusted to equal the actual net proceeds from this offering (less the $5.0 million of net offering proceeds to be retained by VNCE for general corporate purposes) and net borrowings under its new term loan facility.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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Results for vnce
7 Oct 15 00:51:44
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/8WvnrVmkBS .. $VMO $VMW $VNCE
6 Oct 15 23:18:12
$MT $5.81 9,119,161.00 $HUN $11.68 6,992,806.00 $I $7.38 645,361.00 $VNCE $3.85 553,197.00
Large Void Bot
6 Oct 15 14:00:18
Warren of Wall St
6 Oct 15 13:50:45
Like stocks with a solid Return on Equity? Look at Vince Holding $VNCE with an ROE of 36.5% https://t.co/KR8Iqetmgf http://t.co/Psn9mkvHQG
6 Oct 15 13:37:02
$VNCE: New Insider Transaction on VNCE by See Remarks: http://t.co/qs7KbehSha
Insider Alerts
6 Oct 15 13:36:18
NEW insider transaction on $VNCE reported a moment ago: http://t.co/jwwXE6bxHU
6 Oct 15 06:40:55
$VNCE 4.03 from 3.6 https://t.co/6ykZ3QVVab
6 Oct 15 02:01:56
$YPF $16.57 2,213,860.00 $AGTC $13.64 402,301.00 $VNCE $3.99 828,168.00 $TSU $10.03 1,764,285.00 $ALDR $35.31 625,082.00
5 Oct 15 23:07:07
$VNCE: Vince Holding Corp. (NYSE:VNCE) Analyst Price Target: http://t.co/BFt5TMkklT
5 Oct 15 13:35:07
$VNCE: New SEC Filing for VNCE: Form SC TO-I/A (No. 0001193125-15-337527): http://t.co/V9wRsTiyyn
New SEC Filings
5 Oct 15 13:34:22
NEW SEC Filing for $VNCE filed a moment ago: http://t.co/73oLopIDHx http://t.co/uJ6rut7RPY
5 Oct 15 10:57:56
VNCE 3.69 Vince Holding Corp. Common Stoc $VNCE added to my watch list. Right now with VNCE I am watching the http://t.co/FAXnCwvVS1
Stock Trade Alerts
5 Oct 15 08:03:36
Price Action Alert $VNCE - VINCE HOLDING CORP #stocks #intraday ~ via #AlertTrade
5 Oct 15 07:53:20
$VNCE 3.91 from 3.6 now
mokrari by @edi_bice
5 Oct 15 07:39:42
Worst underperformers ranked 20-25 $VNCE $CRVP $MIND $IMPR $TCO
5 Oct 15 06:46:17
$VNCE 3.76 +.16 - it has only started https://t.co/IJrPwSy0PO
5 Oct 15 06:36:19
$VNCE 3.7 from 3.6.............. https://t.co/TS3Urj9Lg8
5 Oct 15 01:37:02
$VNCE Institutional ownership up 3.71% Q/Q, with 451,579 net purchase http://t.co/i7esTzi8tw http://t.co/6KrEMzYsNU
4 Oct 15 22:41:02
$VNCE: Company Shares of Vince Holding Corp. (NYSE:VNCE) Drops by …: http://t.co/Gxweuq23K0
4 Oct 15 21:50:04
UA Under Armour, Inc. Ask http://t.co/W3yLpO4mhb $UA $CTLE $VNCE $EDC #UA #finance #stocks
4 Oct 15 21:50:03
VNCE Vince Holding Corp. Filings http://t.co/zghilFiYsg $VNCE $UPRO $UDOW $DOW #VNCE #stockmarket #stockmarket
IH News Desk
4 Oct 15 21:49:34
VNCE Vince Holding Corp. Ask http://t.co/oxkC6TAqlq $VNCE $TWTR $IWM $SLW #VNCE #nasdaq #pennystocks
Investors Hangout
4 Oct 15 21:49:04
VNCE Vince Holding Corp. Financials http://t.co/RY8ZgIsKnQ $VNCE $NGD.TO $KMI $VNR #VNCE #stockmarket #nasdaq
4 Oct 15 21:49:03
VNCE Vince Holding Corp. Change http://t.co/4kivGJ6P23 $VNCE $NEM $VNQ $SBUX #VNCE #finance #stocks
IH News Desk
4 Oct 15 21:48:52
VNCE Vince Holding Corp. P/E Ratio http://t.co/pyg86shPxU $VNCE $STZ $GE $TVIX #VNCE #investing #invest
4 Oct 15 21:48:32
UWTI VelocityShares 3x Long Crude ETN 52Wk Low http://t.co/BZQNI0RlBN $UWTI $VNTV $TQQQ $VNCE #UWTI #nasdaq #tradeideas
Investors Hangout
4 Oct 15 21:47:56
UNG United States Natural Gas Fund Ask Size http://t.co/nps0XdEW3Q $UNG $AMZN $VNCE $BTE #UNG #finance #stock
4 Oct 15 21:46:03
SLW Silver Wheaton Corp. Last Price http://t.co/i1RmNRmmgf $SLW $COST $AMZN $VNCE #SLW #share #stockmarket
4 Oct 15 21:45:33
SLW Silver Wheaton Corp. Stock Message Board http://t.co/WCbPEauJEj $SLW $HZNP $XSP.TO $VNCE #SLW #invest #stocks
Rosner Stocks
4 Oct 15 21:45:16
QLD ProShares Ultra QQQ Fund Filings http://t.co/teKcVAxMdk $QLD $WWAV $VNCE $VZ #QLD #stocks #stockmarket
4 Oct 15 21:43:33
NMBL Nimble Storage, Inc. Ask Size http://t.co/ZXrT5KHM2L $NMBL $SQM $VNCE $VXX #NMBL #share #share
Lucky Jimmy
4 Oct 15 21:43:05
NHC.TO Nobilis Health Corp. Financials http://t.co/98ZTdPJKYD $NHC.TO $EEM $LABU $VNCE #NHC.TO #stocks #stocks
4 Oct 15 21:37:35
EQC Equity Commonwealth REIT E.P.S. http://t.co/I8yWXFSyYD $EQC $XIV $EWJ $VNCE #EQC #share #stock
4 Oct 15 21:34:05
BIB ProShares Ultra NASDAQ Biotechnology Yield http://t.co/gkHSSIozrX $BIB $VNCE $CAH $SCO #BIB #pennystocks #stocks
Stock Forums
4 Oct 15 21:34:05
BAA Banro Corp. Filings http://t.co/lx2gEpT8AF $BAA $HZNP $GDXJ $VNCE #BAA #investing #invest
4 Oct 15 21:32:05
AF Astoria Financial Corp. Change http://t.co/nqiNYzMOgv $AF $ANY $HZNP $VNCE #AF #nasdaq #pennystocks
Breaking News Now
4 Oct 15 07:37:02
$VNCE: Earnings Focus: Vince Holding Corp. (NYSE:VNCE): http://t.co/D5wc2bsuXA
mokrari by @edi_bice
4 Oct 15 07:19:26
Worst underperformers ranked 15-20 $HIIQ $MFRI $LTRE $CRTN $VNCE
Reporting Standards
3 Oct 15 21:39:55
$VNCE VINCE HOLDING CORP. filed a new #XBRL report to the #SEC. http://t.co/sRKRsdOz6s
Sleek Money
3 Oct 15 08:13:57
Analysts Set Vince Holding Corp Target Price at $12.25 $VNCE http://t.co/r92go2Y0z0
3 Oct 15 08:12:27
Analysts Set Vince Holding Corp Target Price at $12.25 $VNCE http://t.co/OGeGHkpoF4
3 Oct 15 08:08:02
$VNCE: Analysts Set Vince Holding Corp Target Price at $12.25 (NASDAQ …: http://t.co/Q4Va4Y3z5s
mokrari by @edi_bice
3 Oct 15 07:09:52
Worst underperformers ranked 15-20 $HIIQ $MFRI $CRTN $VNCE $CRVP
2 Oct 15 12:48:49
$VNCE in some 3.60 avg chart: http://t.co/qyp73SNixD + http://t.co/UkCGnNdEkw
Large Void Bot
2 Oct 15 07:24:14
Daily Reversal (10:24): $VNCE Last: 3.59; pHigh: 3.58; rVol: 0.387; pClose: 3.55; LOD: 3.4500; Perf: 1.1%
1 Oct 15 09:24:03
$VNCE Institutional ownership up 3.71% Q/Q, with 451,579 net purchase http://t.co/i7esTzi8tw http://t.co/YbNJbRskfA
1 Oct 15 08:20:04
$NUE $VNCE $SU: Shares with Dropping Short Interest: Nucor Corporation (NYSE:NUE …: http://t.co/gU2NMJtBUl
Clark Joseph Kent
1 Oct 15 00:37:51
Sleek Money
30 Sep 15 19:52:00
Vince Holding Corp Shares Down 6.9% $VNCE http://t.co/eyRwELAd1g
30 Sep 15 19:42:08
$VNCE: Vince Holding Corp Shares Down 6.9% (VNCE): http://t.co/kDc1MyTc8x
By  +Follow November 21, 2013 3:38PM



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