PVH Corp. said Monday it has completed the sale of its Speedo North American business to Pentland Group, parent company of the Speedo brand, for $170 million in cash, subject to a working capital adjustment.
The transaction’s proceeds will be used to further bolster PVH’s core balance sheet strength and add to its liquidity position that stands now at over $1.3 billion in cash and available borrowings.
“The decision to reunite the Speedo business globally allows for the brand’s stewardship by Pentland to be holistic and comprehensive,” said Manny Chirico, chairman and chief executive chairman of PVH. “This transaction aligns with PVH’s goals of optimizing our Heritage Brands business in the ever-evolving retail environment and focusing on long-term growth of our global brands, Calvin Klein and Tommy Hilfiger.”
Speedo was started in Sydney, Australia, in 1914. Since developing the first racer-back in the Twenties, Speedo has been behind many of the major innovations in swimwear, and more Olympic gold medals have been won in Speedo than any other brand.
Pentland Group, which also owns the Berghaus, Canterbury, Ellesse and SeaVees brands, acquired Speedo in 1991 and directly and through partnership with licensees like PVH has developed into the world’s leading performance swimwear brand. Pentland will now operate the Speedo businesses worldwide.
Andy Long, chief executive officer of Pentland Group’s Pentland Brands division, said, “The completion of the Speedo North America acquisition, during these uncertain times, demonstrates our long-term commitment to the business and our passion for building a truly global brand. We’re looking forward to welcoming the team to the Pentland family and, while our current priority is the health and wellbeing of all our employees, this acquisition will allow us to offer our customers a stronger global brand proposition when demand resumes.”
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