Kellwood to Buy 2 S.F. Clothing Companies

Kellwood Co., a maker of apparel and accessories, agreed to buy two closely held San Francisco-based companies for about $164.3 million in stock as it extends its product lines to reach young women. Kellwood will acquire Koret of California Inc. and Fritzi California for a combined 6.085 million shares. It expects the purchases to close in January. The Koret acquisition would give Kellwood a Canadian customer base and a moderately priced sportswear line for women. Koret has annual sales of about $300 million. Fritzi California, with annual sales of about $100 million, sells dresses and sportswear for young women and girls. Kellwood’s largest customer is Wal-Mart Stores Inc., which accounted for about 10%, or $192.9 million, of its sales in the fiscal year ended April 30. Chesterfield, Mo.-based Kellwood shares were unchanged at $27 on the NYSE.