PVH to Merge with Warnaco, Acquire Calvin Klein Brand

In What's New, Industry News by Accessories Staff

Calvin Klein

New York–PVH Corp., which bought Tommy Hilfiger in a $3 billion deal in 2010, now plans to acquire Warnaco Group Inc. in a $2.9 billion deal.

The resulting company from the merger will create one of the world’s largest apparel and accessories companies and give PVH complete control of the Calvin Klein brand.

Warnaco already sells Calvin Klein jeans and underwear, the brand’s two largest categories, under a license and also sells brands such as Speedo, Warner’s and Olga.

PVH said today it would pay Warnaco shareholders $51.75 in cash and a portion of its stock for each Warnaco share. That puts the total per-share value at $68.43, a 34% premium over the company’s closing price on Friday, the last day markets were open before Hurricane Sandy hit the Northeast and closed markets for two days.

‘‘This is a unique opportunity to reunite the ‘House of Calvin Klein’ and reinforces our strategy to drive the global growth of Calvin Klein,’’ said Emanuel Chirico, PVH’s chairman/ceo.

The combined companies would have more than $8 billion in annual revenue.

The deal is expected to close early next year. The boards of directors for both New York-based companies have unanimously approved it.


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