by Stephen Garner

PVH Corp. has announced that it has agreed to acquire Gazal, its longtime licensing partner in Australia.

The deal is expected to close in the second quarter and will include the 78 percent of Gazal shares PVH doesn’t already own for 124 million Australian dollars or about $88 million after property divestitures.

If the deal is approved, PVH will buy its joint venture with Gazal, PVH Brands Australia, which was set up in 2014. The joint venture holds licenses for Calvin Klein, Tommy Hilfiger, and Van Heusen brands, as well as the Pierre Cardin, Bracks, and Nancy Ganz brands in Australia, New Zealand, and other parts of Oceania. The joint venture generated approximately 260 million Australian dollars in revenues last year.

The aggregate net purchase price for the approximately 78 percent of Gazal shares being acquired is approximately 124 million Australian dollars, after taking into account the divestiture to a third party of Gazal’s owned office building and warehouse in Banksmeadow, New South Wales, which will take place shortly following the closing date of the acquisition.

“I’m pleased that we have agreed to acquire Gazal. PVH currently – and for many years – has had a successful business relationship with our Australian partners and would be pleased to bring them into the larger PVH family,” said Emanuel Chirico, chairman and CEO, PVH Corp. “Gazal has enhanced the market position of our brands in Australia and New Zealand and we believe the region continues to offer significant growth over the next five years and aligns with our strategic priority to expand our direct control of businesses operated under the Calvin Klein and Tommy Hilfiger brands worldwide.”