FTC GIVES NOD TO PACT BY CK, RIO
WASHINGTON — The Federal Trade Commission said Monday it has given its antitrust OK for Calvin Klein to sell its women’s and men’s jeanswear business to Rio Sportswear and Charterhouse Group International.
In issuing the routine clearance without explanation, the agency essentially said it found no anticompetitive reasons to block the deal, signed July 13.
As reported, Rio and Charterhouse have formed a new company, Calvin Klein Jeanswear Co., which will hold the license for the CK Calvin Klein jeanswear collections and will be responsible for sourcing and manufacturing. Arnold Simon, chief executive officer of Rio, will head the new company.
The deal — valued at around $50 million, exclusive of ongoing royalties and variables such as inventories — is expected to be completed by the end of this month. It includes Calvin Klein’s domestic jeanswear production facilities — a factory and laundry in Nesquehoning, Pa., and a factory in Abbeville, S.C.
— Fairchild News Service