$3.5b deal to reunite Calvin Klein under one roof
NEW YORK (AFP) - American ready-to-wear company PVH, owner of luxury brands Calvin Klein and Tommy Hilfiger, announced on Wednesday it was planning to acquire underwear-maker Warnaco in a US$2.9 billion (S$3.5 billion) transaction.
The acquisition, approved unanimously by the boards of both companies, would bring all of Calvin Klein's apparel lines under one roof and create a new company with US$8 billion in sales, the companies said in a joint statement.
Warnaco had licensed the rights to Calvin Klein's underwear line.
"Having direct global control of the two largest apparel categories for Calvin Klein - jeans and underwear - will allow us to unlock additional growth potential of this powerful designer brand across all major product categories, geographies and distribution channels," said Mr Emanuel Chirico, CEO of PVH, in the statement.