US apparel giant PVH Corp has inked a deal to acquire the remaining stake in its Australian joint venture (JV) partner, Gazal Corporation.

In an announcement yesterday (20 February), PVH said a newly formed and wholly-owned subsidiary would acquire the interests in apparel supplier and retailer Gazal that it does not already own for US$6 per share. 

It added the aggregate net purchase price for the 78% of Gazal shares being acquired will be around $124m after divestiting Gazal's owned office building and warehouse in Banksmeadow, New South Wales, which will take place shortly following the closing date of the acquisition.

PVH will acquire its joint venture with Gazal, 'PVH Brands Australia Pty Limited,' which started doing business in 2014. The JV holds licenses for PVH's Calvin Klein, Tommy Hilfiger and Van Heusen brands, as well as the Pierre Cardin, Bracks and Nancy Ganz brands in Australia, New Zealand and other parts of Oceania.

The JV generated about $260m in revenues on a 12-month trailing basis as of July 2018.

It is a condition of the transaction that key management of Gazal and the JV commit to remain in their roles for at least two years and use about 25% of their existing Gazal equity to subscribe for an approximate 6% stake in the PVH subsidiary that is the parent company of the acquirer.

"I'm pleased that we have agreed to acquire Gazal. PVH currently – and for many years – has had a successful business relationship with our Australian partners and would be pleased to bring them into the larger PVH family," said PVH CEO Emanuel Chirico.

"Gazal has enhanced the market position of our brands in Australia and New Zealand and we believe the region continues to offer significant growth over the next five years and aligns with our strategic priority to expand our direct control of businesses operated under the Calvin Klein and Tommy Hilfiger brands worldwide."