PVH Corp. Wednesday completed its acquisition of Warnaco Group Inc., elevating the buyer into an $8 billion apparel colossus and effectively bringing the Calvin Klein jeans and underwear businesses in-house. In a deal signed as Hurricane Sandy bore down on New York in late October, PVH paid $2.9 billion for the company, with Warnaco shareholders receiving $51.75 in cash and about 0.18 of a share of PVH common stock for each share held. The equity conversion translates into about 10 percent of PVH’s outstanding shares.
PVH bought Calvin Klein Inc. in 2003, and speculation about a PVH acquisition of Warnaco, which owned the Calvin Klein Underwear business and licensed jeanswear under the designer brand, had been active since, muted only briefly by PVH’s 2010 purchase of Tommy Hilfiger.
The consummation of the deal brings the Calvin Klein businesses previously handled by Warnaco into the PVH fold and adds its Speedo, Olga and Warner brands to the acquirer’s heritage division, which also includes the Van Heusen, Izod, Arrow and Bass brands. PVH produces sportswear and dresswear under a series of licenses housed within its heritage business as well.
Emanuel Chirico, chairman and chief executive officer of PVH, commented, “This combination reunites the house of Calvin Klein and enables us to leverage Warnaco’s established operations in Asia and Latin America along with our strong operations in North America and Europe to fuel our growth strategies for the Calvin Klein brand.”
Helen McCluskey, who became president and ceo of Warnaco a year ago this month, relinquishes that post and becomes a director of PVH. “This transaction has delivered a significant premium to our stockholders and offers them, our businesses, our business partners and our associates the opportunity to realize additional benefits from the compelling synergies and prospects of the combined company,” she said. “I look forward to my new role in seeing PVH and its businesses develop.”
As it closed the deal, PVH also sealed a series of new senior secured credit facilities totaling about $4.3 billion.
Shares of PVH Wednesday closed up 12 cents, or 0.1 percent, at $120.84.
Donatella Versace will receive the International Award at the 2018 @cfda awards, which were announced tonight. Tap link in bio for a list of all the nominees and honorees. #wwdnews #wwdfashion (📷: @rahirezvanistudio )
The 2018 @cfda Awards nominees are out! @virgilabloh for @off____white for is nominated for Womenswear Designer of the Year. Tap link in bio for all the nominees. #wwdnews #wwdfashion ( 📷: @simonelezzi)
@chanelofficial is suing high-end vintage retailer @whatgoesaroundnyc for trademark infringement, a move that could cost the retailer millions. The French fashion house claims that it’s not only unintentionally sold counterfeit goods on occasion, but that it’s “gone out of its way to create an association with Chanel,” which does not exist. Read Chanel’s statement on WWD.com #wwdnews (@aitorrosasphoto)
Exclusive: Guillaume Henry has left @ninaricci, the fashion house said on Thursday. “After three years of mutually gratifying creative collaboration, Nina Ricci and Guillaume Henry have together decided that the designer will depart the house after the presentation of the fall-winter 2018-19 collection,” Ricci said in a statement. Get all the details on WWD.com #wwdfashion (📷: @aitorrosasphoto)
“When Bella enters a room all heads turn,” said @peterphilipsmakeup, creative and image director for @diormakeup. Last night, the two celebrated the product launch of Dior’s Lacquer Plump in Los Angeles with other celebs like @parisjackson, @winnieharlow and more. Head to WWD.com to see the rest of the photos from the night (📷: @chelsealaurenla) #wwdeye
“These shirts are an art form, it’s about getting the message out to as many people as you can. It breaks down the pretentiousness of the art gallery,” says Kumasi Sadiki, cofounder of @ebayontheblock, a store that sells merchandise by New York artists who are shifting their attention to clothes as a wearable medium. Pictured here is a design by artist @joegarvey_, one of the first to spearhead this movement. Head to WWD.com to read @mistywhitesidell full story on how their designs have become merch for the underground elite #wwdfashion
@netaporter is dedicating a part of its website – called the Fine Jewelry and Watch Destination – to highlight its high-end jewelry. The hub will feature products on the site, as well as incorporate styling advice and educational content about high-priced jewelry items. Get more details on WWD.com. #wwdaccessories
For “The Cher Show,” an upcoming musical based on @cher’s life and career, @bobmackie is once again collaborating with the singer in designing the costumes. For decades, Mackie has designed glitzy stage costumes and red carpet looks for the 71-year-old Grammy winner. Pictured here is a sketch of some of the pieces in the wardrobe of the musical, which is set to debut in Chicago on June 12 before making its way to Broadway #wwdeye