PVH says that the sale of its Warners, Olga and True&Co businesses to Basic Resources will help with its long-term PVH+ Plan of focusing on its flagship brands, Calvin Klein and Tommy Hilfiger.
The transaction will be completed entirely in cash and is valued at $160m, subject to adjustment, plus an earnout based on the net sales on a portion of the acquired businesses for calendar 2024, with a maximum value of $10m.
The deal is expected to take place by the end of November, subject to standard closing conditions.
PVH Corp says it intends to use the net proceeds from the transaction to repurchase shares of its common stock.
Stefan Larsson, CEO of PVH sees this transaction as an important next step in building PVH’s core brands.
In relation to the sale, he says: “We know the Basic Resources team well as a longstanding PVH partner and are confident they are the right company to help grow these brands and ensure their continued success over the long term.”
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Basic Resources, led by CEO Salomon Harari emphasises the strong consumer resonance of the Warners, Olga and True&Co brands: “Under these powerful brands, PVH has built a business that offers innovative, solution-oriented products that strongly resonate with consumers.
“We look forward to welcoming the team and leveraging our resources and expertise in the market to drive continued growth by offering customers well-designed high-quality products.”
Solomon Partners, L.P. is the exclusive financial advisor, and Lowenstein Sandler is providing legal counsel to PVH on the transaction.
Legal advisory for Basic Resources is being provided by Sills Cummis & Gross.
Larsson said at the time: “We delivered another strong quarter across both Calvin Klein and Tommy Hilfiger driven by the disciplined execution of our long-term, brand-building growth plan, the PVH+ Plan.”
GlobalData apparel analyst Alice Price added the results would’ve been “somewhat of a relief to the business” as PVH continues to improve, with revenue up 3.5% to $2.2bn.