Clothing maker PVH is to buy rival The Warnaco Group in a cash-and-stock deal worth about $2.9bn that also brings together all Calvin Klein apparel categories in one place for a single vision of the brand.

The move will make PVH will be one of the largest and most profitable global branded lifestyle apparel companies in the world, giving it a combined revenue of more than $8bn.

As well as Tommy Hilfiger - which it bought two years ago for US$3bn - its brand line-up includes Van Heusen, Izod, Arrow, Bass, along with Speedo, Olga and Warner's from Warnaco.

Crucially, though, the deal is a "unique opportunity to reunite the 'House of Calvin Klein' and reinforces our strategy to drive the global growth of Calvin Klein," according to PVH chairman and CEO Emanuel Chirico.

PVH has owned the Calvin Klein brand since 2002, but Warnaco has retained control of the jeans and underwear lines during this time.

"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," Chirico added.

The Warnaco Calvin Klein businesses will be moved onto PVH's Calvin Klein platform under the leadership of Calvin Klein's president and CEO Tom Murry.

Helen McCluskey, Warnaco's president and COE, is also expected to join PVH's board of directors following the close of the deal in 2013.

"PVH has a proven track record of successfully integrating acquisitions," Chirico continued.

"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."

PVH expects to save around $100m a year in synergies from the transaction, as well as one-time costs of $175m over three years. It also expects the deal to add $0.35 per share to earnings in the first full year.

The company earlier this month lifted its earnings outlook for the third quarter and full year thanks to the strong performance of its Tommy Hilfiger business in North America and its Calvin Klein brand. And it today reiterated that earnings per share for both periods are set to be "at least at the top end" of its guidance.

Most recently, second quarter profit was up 31.5% to US$87.7m, while underlying revenues increased 4% to $1.337bn.

But Warnaco, on the other hand, has cut its full-year projections after second-quarter profit slumped 79% to US$9.6m.

Sales fell 5% to $563.9m on declines in sportswear and intimate apparel, which the company blamed on challenging market conditions, particularly in the US and Europe. Its woes contributed to a 12% drop in Calvin Klein licensing revenues in Europe during the second-quarter.