PVH Corp, the brand owner of Tommy Hilfiger and Calvin Klein, is to acquire The Warnaco Group to become an US$8 billion global branded lifestyle company. The merger agreement values Warnaco, the licensee for Calvin Klein jeans and underwear, at about US$2.9 billion.
With over US$8 billion in revenue, PVH will be one of the largest and most profitable global branded lifestyle apparel companies in the world, it said in a press release, with a diversified portfolio of brands led by Calvin Klein and Tommy Hilfiger, as well as Van Heusen, IZOD, ARROW, Bass, Speedo, Olga and Warner’s.
The merger, which has been unanimously approved by the Boards of Directors of both companies, is expected to close in early 2013, at which time the former Warnaco stockholders will own approximately 10% of the outstanding common stock of PVH. In addition, Warnaco President and Chief Executive Officer Helen McCluskey is expected to join PVH’s Board of Directors.
The Warnaco Board of Directors has unanimously recommended that Warnaco stockholders approve the transaction.
Opportunity to reunite the House of Calvin Klein
“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 PVH Chairman and Chief Executive Officer Emanuel Chirico.
“Having direct global control of the two largest apparel categories for Calvin Klein – jeans and underwear – will allow us to unlock additional growth potential of this powerful designer brand across all major product categories, geographies and distribution channels.
“The Warnaco Calvin Klein businesses will be moved onto our Calvin Klein platform under the leadership of Tom Murry, President & Chief Executive Officer, Calvin Klein, to ensure a single brand vision globally.”
Helen McCluskey, President and Chief Executive Officer of Warnaco, said: “This transaction delivers compelling value to our stockholders and significant benefits for the combined company. We are proud of what we have accomplished, driving growth and profitability and increasing our share price by roughly +500% since our restructuring in 2003. Our team has built a strong global infrastructure, expanded our direct-to-consumer footprint and created a solid foundation for long-term growth.
“We look forward to the opportunities this combination brings to the continued success of Calvin Klein Jeans and Calvin Klein Underwear, the increased potential for our heritage brands, and the future for our associates.”
Chirico added: “PVH has a proven track record of successfully integrating acquisitions. We are confident this transaction will create tremendous value for stockholders, as well as provide enhanced opportunities around the world for both companies’ respective associates, vendors and other business partners.
“We plan to align Warnaco’s established operations in Asia and Latin America with our strong operations in North America and Europe to fuel our growth strategies for both Calvin Klein and Tommy Hilfiger.”
 |
About PVH Corp
PVH Corp, one of the world’s largest apparel companies, owns and markets the Calvin Klein and Tommy Hilfiger brands worldwide. It is the world’s largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, Tommy Hilfiger, IZOD, ARROW, Bass and GH Bass & Co, and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps, Donald J Trump Signature Collection, JOE Joseph Abboud, DKNY, Ike Behar and John Varvatos.
 |
About Warnaco Group
The Warnaco Group, headquartered in New York, is a leading global apparel company designing, sourcing, marketing and selling men’s, women’s and children’s sportswear and accessories, underwear and swimwear under owned and licensed brands as Calvin Klein, Speedo, Chaps, Warner’s and Olga.
