Beatrice Cos. Agrees to Sell Esmark Group

Beatrice Cos. said Monday that it has agreed in principle to sell Esmark Inc., the parent company of Danskin and of Pennaco hosiery, to an investor group organized by Hero & Co., a private New York investment banking firm. Terms of the sale were not disclosed.

Esmark’s knitwear group includes such well-known brands as Danskin body wear and Round the Clock and Givenchy hosiery. The group has combined revenue of about $100 million, Beatrice said.

The purchaser, a group called Eaglewood Partners, intends to retain the current managements of both Danskin and Pennaco, Beatrice said.

Beatrice, which recently was converted to private ownership in a leveraged buyout, put the knitwear group on the block last October as part of a restructuring, and it reportedly considered several bids. The interest of Byron Hero, a wealthy New York investor, surfaced in February.

The transaction is subject to the execution of definitive agreements, among other things, and is expected to close in July, Beatrice said.

Observers say Beatrice was forced to offer its successful Pennaco operation in a package with Danskin to find a buyer. Danskin has seen sales and profits slide because of increased competition, high overhead and production costs and an inability to react quickly enough to changing fashion trends, sources said.

Unlike many of its competitors, Danskin manufactures its leotards, leg warmers, tights and other body wear in the United States.