ABG TO ACQUIRE HERITAGE BRANDS PORTFOLIO FROM PVH
Authentic Brands Group (ABG) has reached an agreement to purchase the Heritage Brands portfolio from PVH Corp. The cash purchase price for the transaction is approximately $220 million, subject to customary adjustment. The transaction includes the Izod, Van Heusen, Arrow, and Geoffrey Beene brand trademarks.
“This was a difficult decision, as we recognize that our Heritage Brands business provided the resources that laid the foundation and gave us the opportunity to build PVH into one of the largest fashion companies in the world today,” said Stefan Larsson, chief executive officer of PVH Corp. “We have been proactively optimizing our Heritage Brands business over the past few years, while focusing on allocating resources to higher-return businesses to maximize shareholder value. We believe ABG is well-positioned to develop and invest in these brands for their future success.”
Larsson continued: “We continue to execute on our accelerated recovery priorities across our businesses globally. This transaction reflects our commitment to driving our next chapter of sustainable, profitable growth – focused on the Calvin Klein and Tommy Hilfiger brands, our international markets, driving product strength with increased pricing power and margin expansion, and winning in the marketplace through super-charging e-commerce.”
With 60 licensing partners globally, Izod, Van Heusen, and Arrow are known for their premium lifestyle offerings, which include sportswear, dress furnishings, denim, footwear, accessories, fragrance, home, and many other categories.
As the new owner, ABG will assume all licensing partnerships and marketing initiatives for all the brands. Through a license agreement with ABG, PVH Corp. will continue to operate all of the brands’ dress furnishings businesses in North America. Additionally, Centric Brands has been granted the license for Izod men’s sportswear and United Legwear & Apparel Company has been granted the licenses for Van Heusen and Arrow men’s sportswear.
The transaction, which is expected to close in the third quarter of this year, is subject to customary closing conditions, including regulatory approval.
“This acquisition was particularly attractive because of PVH’s well-established partnerships for these heritage brands,” added Jamie Salter, founder, chairman, and CEO of ABG. “Each brand has strong consumer recognition, global distribution anchored at leading retailers, and robust product programs with best-in-class licensing partners. We believe there are significant opportunities to tap into the brands’ rich histories and to further grow their presence around the world.”
