Shares of Differential Brands (DFBG) hit a record high of $6.46 on Wednesday.

The massive gain came after the apparel company announced the purchase of some of the North America businesses owned by Global Brands Group Holding Ltd.

Differential Brands expects to close the $1.38 billion all-cash transaction in the third quarter of calendar 2018.

Differential Brands expects to generate revenue of over $2.3 billion once the deal is approved.

Hong Kong-based Global Brands currently owns licenses to produce apparel for big-name brands, such as Calvin Klein, Disney, Michael Kors, Star Wars, Tommy Hilfiger, Frye, Buffalo and David Bitton in North America.

DFBG stock ended regular trading on Wednesday at $5.45, up $4.55, or 505.56%. The stock has lost nearly 54% for the past year.

Company Comments

Differential Brands Group Chairman William Sweedler, stated:

 “On behalf of the Board, I am thrilled that we were able to structure a transaction with the Fung family to acquire one of the leading branded consumer soft goods companies in North America with a world class management team led by Jason Rabin.”

“Jason and his team plan to invest significant capital into this Transaction, which will transform Differential into a large scale North American branded platform. Mr. Rabin has a proven track record of successfully growing numerous world class brands since inception. We are confident this Transaction will create tremendous value for our stockholders, as well as provide enhanced opportunities in North America for our brands and business partners,” Sweedler concluded.

The president of Global Brand Group North America, Mr. Said Rabin, also welcomed the move saying, “We are thrilled to join Differential Brands Group and lead our combined platform by leveraging our expansive infrastructure, distribution and sourcing networks to drive growth, and we look forward to working with the Differential management team and Tengram to help support the company’s growth as it capitalizes on promising market opportunities.”