US apparel giant PVH Corp has closed the acquisition of Gazal Corporation, its long-term partner in Australia.
The deal was initially announced in February, and has seen a wholly-owned PVH subsidiary acquire the remaining 78% of outstanding shares in the apparel supplier and retailer that it did not already own for US$6 per share.
Four key members of management of Gazal and the joint venture have entered into employment agreements and are expected to remain in their roles for at least two years.
“Our decision to acquire Gazal is aligned with PVH’s strategic priority to expand our worldwide reach by assuming more direct control over our brands’ regional licensed businesses. By joining forces now, we believe we’re well positioned to capture the significant growth in the Australia and New Zealand markets,” says Emanuel Chirico, PVH chairman and CEO.
With $9.7bn in annual revenues, PVH’s portfolio includes the Calvin Klein, Tommy Hilfiger, Van Heusen, Izod and Arrow brands.
As well as managing PVH Brands Australia Pty Limited (the joint venture between PVH and Gazal), Sydney-based Gazal also operates other licensed and Gazal-owned brand names, such as Pierre Cardin, Bracks and Nancy Ganz.