Endeavor Acquisition Corporation, an American investment fund set up in July 2005, has agreed to acquire American Apparel and its affiliated subsidiaries from its founder and chief executive, Don Charney, in exchange for 32,258,065 shares worth a total of $244.8 million. Additionally, up to $110 million in debt will be assumed by Endeavor, and $20.5 million worth of Endeavor stock will be made available to American Apparel employees.

For the 2006 fiscal year, ending Dec. 31, 2006, American Apparel’ss sales were expected to reach about $275 million, and its earnings before interest, taxes, amortization and depreciation (EBITDA) were projected at roughly $30 million, indicating a nearly eightfold increase since 2002. The company currently has 143 retail outlets throughout the world, including several in Europe.

The merged company is expected to begin trading publicly on the American Stock Exchange or another one in the USA under the American Apparel name. A capital infusion should allow the company to improve its unique manufacturing processes to continue to make its expensive T-shirts in Los Angeles, and to promote further international growth for this company, which insists on using organic cotton.