NEW YORK — As part of an ongoing plan to gain greater control of its brand on a worldwide basis, Polo Ralph Lauren Corp. has signed a $250 million deal to purchase certain assets of RL Childrenswear Co. LLC, its licensee for children’s wear in the U.S., Canada and Mexico.
The agreement, which is expected to close next month, includes a $230 million cash transaction and $20 million in contingent and deferred payments over the next three years, Polo said. Ralph Lauren children’s wear generates more than $400 million in annual wholesale volume worldwide.
Since January 2000, Polo Ralph Lauren has regained control of $1.8 billion of its $4.7 billion business. Ralph Lauren, chairman and chief executive officer, said in a statement, “Since launching Polo for boys 25 years ago, we’ve developed a substantial global business extending beyond boys to include newborns, infants, toddlers and girls.”
RL Childrenswear Co., or its affiliated company, S. Schwab Co. Inc., has been a Polo Ralph Lauren licensee since 1993. S. Schwab makes infants’ and children’s apparel under the Little Me and Little Tikes brands.
In other news, Ralph Lauren has opened a store on the island of Nantucket, Massachusetts, upping its store count to 264.