Apparel group Perry Ellis International has signed a deal with casual clothing company Levi Strauss & Co to make and distribute Dockers-branded men's outerwear in the US and Mexico.

The outerwear line includes men's jackets, coats and synthetic fleece.

Perry Ellis will begin delivering goods to chain and specialty stores by June 2006. The company expects an accretive effect on earnings from financial 2008 onwards.

The parties have agreed to take part in the deal until December 2009, with an option to renew until December 2012.

"We are excited about this platform to grow the outerwear business for one of the best names in fashion…Dockers is a great world-class brand that represents the American lifestyle," said Perry Ellis International chairman and CEO George Feldenkreis.

"We plan to take advantage of synergies in production cycles and other functions with our swimwear business, as the swimwear buyers often make purchases of both categories."

Perry Ellis intends to operate the Levi business separately, with a group of designers based in Seattle.