PVH Corp. (New York) has purchased The Warnaco Group Inc. (New York) in a transaction valued at approximately $2.9 billion. The deal makes PVH one of the largest global branded lifestyle apparel companies in the world, with a diversified portfolio that includes such brands as Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow, Bass, Speedo, Olga and Warner’s.
PVH anticipates approximately $100 million of annual run rate synergies from the transaction, which will be fully realized over three years.
“This is a unique opportunity to reunite the ‘House of Calvin Klein’ and reinforces our strategy to drive the global growth of Calvin Klein,” says Emanuel Chirico, chairman and ceo of PVH. “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.”
As part of the deal, the Warnaco Calvin Klein businesses will be moved onto the Calvin Klein platform under the leadership of Tom Murry, president and ceo, Calvin Klein.