PVH Corp. announced that it has entered into a definitive agreement to sell certain intellectual property and other assets of its Heritage Brands business to Authentic Brands Group (ABG) and will exit its Heritage Brands business.
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The cash purchase price for the transaction is approximately US$220 million, subject to customary adjustment. The transaction includes the IZOD, Van Heusen, ARROW and Geoffrey Beene brand trademarks.
The transaction, which is expected to close in the third quarter of PVH’s 2021 year, is subject to customary closing conditions, including regulatory approval.
Stefan Larsson, Chief Executive Officer, PVH Corp. commented, “This was a difficult decision, as we recognize that our Heritage Brands business provided the resources that laid the foundation and gave us the opportunity to build PVH into one of the largest fashion companies in the world today. We have been proactively optimizing our Heritage Brands business over the past few years, while focusing on allocating resources to higher-return businesses to maximize shareholder value. We believe ABG is well positioned to develop and invest in these brands for their future success.”
“We continue to execute on our accelerated recovery priorities across our businesses globally. This transaction reflects our commitment to driving our next chapter of sustainable, profitable growth – focused on the Calvin Klein and TOMMY HILFIGER brands, our international markets, driving product strength with increased pricing power and margin expansion, and winning in the marketplace through super-charging e-commerce,” continued Mr. Larsson.
Jamie Salter, Founder, Chairman and CEO of ABG, said, “It is exciting to welcome the storied Heritage Brands into the ABG portfolio. We intend to leverage our global partner network and brand development expertise to continue the good work PVH has done in creating a sustainable licensing business for the brands.”
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PVH will continue to own and operate the intimates and underwear businesses, led by Warner’s, as well as continue to operate the dress shirts and neckwear business.
Centric Brands and United Legwear & Apparel Company have been granted licenses to operate parts of the IZOD, Van Heusen and ARROW sportswear businesses.
PJ Solomon is serving as exclusive financial advisor to PVH on the transaction. Wachtell, Lipton, Rosen & Katz is acting as legal advisor.