TKS Acquisition, Inc. has entered into an agreement to
acquire substantially all of the assets of the LogoAthletic
Inc. and LogoAthletic/Headwear Inc., subsidiaries of VA-
based Tultex Corp. TKS was formed by LogoAthletic CEO
Thomas Shine and COO Michael Kistler, and a group of
investors including: Puma AG; Simon Investors, LLC; McDonald
& Company Securities, Inc.; the IMS Corp.; Blue Chip Venture
Company; Walnut Capital Partners; certain pro athletes and
others. PNC Bank, NA has provided TKS with a commitment to
provide senior debt financing in connection with the
transaction (TKS Acquisition). Puma will be the largest
shareholder of TKS, owning approximately 25% of the company.
Puma CEO Jochen Zeitz will become TKS Chair. In addition,
TKS and Puma will enter into a licensing agreement to sell
Puma branded licensed product and other items, including
branded headgear and accessories (Puma). In Indianapolis,
Sean Horgan wrote the deal gives Shine and Kistler "at least
part-ownership" of the company they helped start 27 years
ago. A Bloomberg News report said TKS agreed to pay Tultex
$84M in cash and $12.5M in subordinated notes due five years
after closing. Tultex had purchased Logo in '92 from Melvin
Simon & Associates for about $60M (INDY STAR-NEWS, 6/13).
REGENCY OBTAINS NEW CREDIT LINE: Arnon Milchan's
Regency Enterprises, which holds a 25% stake in Puma, has a
new $600M credit facility "just as it sets in motion a plan
to boost its film and TV production, strengthen its music
business, and expand its activity in sports merchandise,"
according to Jay Sherman of the HOLLYWOOD REPORTER. The
credit line currently "doubles" the amount of bank credit
that Regency had under a previous facility. Regency said it
wants to leverage the value of its 25% stake in Puma AG and
Milchan "is betting that he can improve the brand's image
and performance" (HOLLYWOOD REPORTER, 6/15).
