FTC OK’S WARNACO-DH DEAL

WASHINGTON — The Federal Trade Commission said Monday it’s given The Warnaco Group the antitrust go-ahead to acquire Designer Holdings.
Warnaco’s purchase of the CK Calvin Klein jeans and khaki licensee needed federal approval before proceeding. In giving the deal their green light, FTC officials found no anti-competitive concerns.
Warnaco, with $1.06 billion in overall sales last year, generated $302.4 million in sales from its license of Calvin Klein intimate apparel and men’s underwear and accessories. The merger will give Warnaco one-third of the $2.5 billion Calvin Klein worldwide business. Last year, DH had sales of $480.3 million, $470 million of that in CK business.
The deal calls for exchanging 0.324 share of Warnaco stock for each DH share. The value to DH holders is about $11 a share, making the deal worth about $354 million.
Linda Wachner, Warnaco’s chairman and president, said the exchange of shares with New Rio LLC, which owns 51.3 percent of DH’s outstanding shares, will occur Oct. 14 as the first step in the process. “We’ll have controlling interest on Tuesday,” she said.
The final step, the shareholder vote on the remaining 48.7 percent, will occur Dec. 12.

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