Authentic Brands Group (ABG) has reached an agreement to acquire PVH Corp.’s Heritage Brands business, which includes the Izod, Van Heusen, Arrow, and Geoffrey Beene brand trademarks. The cash purchase price for the transaction is approximately $220 million, subject to customary adjustment.
The transaction, which is expected to close in the third quarter of PVH’s 2021 year, is subject to customary closing conditions, including regulatory approval.
Stefan Larsson, CEO, PVH Corp. commented, “This was a difficult decision as we recognize that our Heritage Brands business provided the resources that laid the foundation and gave us the opportunity to build PVH into one of the largest fashion companies in the world today. We have been proactively optimizing our Heritage Brands business over the past few years while focusing on allocating resources to higher-return businesses to maximize shareholder value. We believe ABG is well-positioned to develop and invest in these brands for their future success.
“We continue to execute on our accelerated recovery priorities across our businesses globally. This transaction reflects our commitment to driving our next chapter of sustainable, profitable growth, focused on the Calvin Klein and Tommy Hilfiger brands, our international markets, driving product strength with increased pricing power and margin expansion, and winning in the marketplace through super-charging e-commerce.”
Jamie Salter, founder, chairman and CEO of ABG, said, “It’s exciting to welcome the storied Heritage Brands into the ABG portfolio. We intend to leverage our global partner network and brand development expertise to continue the good work PVH has done in creating a sustainable licensing business for the brands.”
PVH will continue to own and operate its intimates and underwear businesses led by Warner’s and continue to operate the dress shirts and neckwear business.
Centric Brands and United Legwear & Apparel Company have been granted licenses to operate part of the Izod, Van Heusen and Arrow sportswear businesses.
PJ Solomon is serving as an exclusive financial advisor to PVH on the transaction. Wachtell, Lipton, Rosen & Katz is acting as legal advisor.
ABG’s portfolio of brands generates more than $14 billion in annual retail sales and includes Marilyn Monroe, Elvis Presley, Muhammad Ali, Shaquille O’Neal, Sports Illustrated, Dr. J, Greg Norman, Neil Lane, Thalia, Nautica, Aéropostale, Eddie Bauer, Forever 21, Juicy Couture, Vince Camuto, Herve Leger, Judith Leiber, Barneys New York, Brooks Brothers, Frye, Lucky Brand, Nine West, Jones New York, Frederick’s of Hollywood, Hickey Freeman, Hart Schaffner Marx, Adrienne Vittadini, Bandolino, Spyder, Tretorn, Tapout, Prince, Volcom, Airwalk, Vision Street Wear, Thomasville, Drexel, and Henredon.
Photo courtesy Izod
