A major apparel deal has been confirmed this week, with PVH Corp confirming that it has agreed to acquire its rival Warnaco Group Inc for approximately US$2.9 billion.
Warnaco owns and licenses a portfolio of highly recognized brand names, with Calvin Klein a key brand under the deal. (The acquisition of Warnaco gives PVH control of the Calvin Klein clothing brand. PVH bought Calvin Klein in 2003 and makes formal-wear and sportswear under that brand; while Warnaco has held the licensing agreements for Calvin Klein jeans and underwear since 1997.)
The deal also sees PVH gain access to the Speedo brand in the Americas. Warnaco has had an in-perpetuity licensing deal in place with Speedo International in the US, Canada, Mexico and Caribbean markets for a number of years. This covers the Speedo brand, marketed and manufactured as Speedo USA by Warnaco, and the Speedo Fastskin sub-brand.
While the PVH and Warnaco deal unifies the ‘House of Calvin Klein’ it is unclear at this time how Speedo will be impacted. Recent years have seen Warnaco shift focus away from designer swimwear in order to build on the performance credentials of the Speedo brand in the key North American region.
The quotes heralding the deal, from the CEOs of both PVH and Warnaco, have given particular attention to the reunited Calvin Klein brand. So, for now, it’s all about fashion.
Regarding Speedo, time will tell if the brand new talk becomes very clear…
www.speedousa.com
www.pvh.com
www.warnaco.com
