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Former Executive Chairman Feldenkreis To Buy Perry Ellis Shares For $437 Mln

Perry Ellis International (PERY) announced that it has agreed to go private in a deal under which a newly formed entity controlled by George Feldenkreis will acquire Perry Ellis for $27.50 per share in cash valued at about $437 million. The transaction, which is expected to close in the second half of calendar year 2018.

Additionally, the Company and George Feldenkreis, Perry Ellis' founder and member of the Company's Board of Directors, have agreed to defer the next annual meeting for the election of directors while the merger agreement is pending.

Perry Ellis said that the purchase price represents a premium of approximately 21.6 percent to Perry Ellis' unaffected closing stock price on February 5, 2018, the last trading day prior to George Feldenkreis announcing his proposal to take the Company private.

The transaction was unanimously approved by the Perry Ellis Board of Directors. Following completion of the transaction, Oscar Feldenkreis will continue to lead the company as Chief Executive Officer. George Feldenkreis, Director and Founder, will return to an active role in the management of the Company.

Perry Ellis will continue to be headquartered in Miami, Florida. Upon close, Perry Ellis will become a privately held company and Perry Ellis common shares will no longer be listed or traded on any public market.

"We believe, upon the closing, that this transaction delivers an immediate cash premium and is in the best interest of all Perry Ellis shareholders," said J. David Scheiner, Non-Executive Chairman of the Perry Ellis Board of Directors and Chair of the Special Committee.

The transaction will be financed through a Senior Secured Asset Backed Revolving Loan Facility underwritten by Wells Fargo Bank, N.A., a $282 million multi-tranche term financing facility provided by Fortress Credit Advisors LLC and equity provided by the Feldenkreis family.

PJ SOLOMON is serving as financial advisor to the Special Committee. SCOPE Advisors LLC is serving as financial advisor to the group led by George Feldenkreis.

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