Monday, December 18, 2006

American Apparel and Proquest Acquisition

Two different acquisitions within few days and both of them is around the same figures.

Cambridge Information Group (parent company of CSA) acquired Proquest for approximately $222 million. American Apparel was acquired by Endeavor Acquisition Corp for $250 million. Why I am personally interested with these two acquisitions? I have been always interested in fashion (my father used to sell fabrics and my grand parents were tailors) and I work in the information industry. I don't think that American Apparel has brought anything to the fashion world beside using Los Angeles labor and some funky marketing. On the other hand my friends Lexy and Vahap are doing some really exciting stuff in fashion and reatiling with their Brooklyn Industries. Good luck to American Apparel when they expand to overseas and with their IPOs.

CSA's acquisition of Proquest will help them in expanding their market in the corporate R&D world. This is a bold (and courageous) move by CSA and definetly a much better investment than buying a t-shirt company when you think about the profit margins of apparel industry.

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