NEW YORK -- The Warnaco Group, as expected, said it has completed the purchase of the business and trademarks of Calvin Klein Inc.'s men's underwear and a license for the trademarks in men's accessories worldwide.

The purchase price was $62.5 million including $24 million in Warnaco stock. The rest was in cash, according to Linda J. Wachner, president, chairman and chief executive officer of Warnaco.

Wachner said that there will be additional royalty payments once the men's underwear sales top $200 million. Annual sales of Calvin Klein men's underwear are currently running at $70 million, Wachner said.

She said the Calvin Klein name gives Warnaco a major entry into the men's underwear business worldwide and adds a strong designer name to Warnaco's existing brands.

Warnaco also will acquire the Klein worldwide trademarks for women's intimate apparel later this year when the agreement with the current U.S. license, Heckler Investment & Manufacturing, expires.

Klein will continue to design and create the advertising for the men's underwear, women's intimate apparel and men's accessories, according to Wachner. Showrooms and design studios will continue to operate from Klein's New York offices.

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