The deal is finally done!
PVH Corp. has successfully finalised the acquisition agreement to buy approximately 78 per cent outstanding stakes in its Australian subsidiary Gazal Corporation Limited, which it did not previously own.
The finalisation of the deal has given PVH complete control of all its Australian brands. The agreement probably will materially enhance company’s 2019 earnings per share on a GAAP basis via a non-cash gain to write up its equity investment in Gazal and the joint venture to fair value.
Speaking about the acquisition, Emanuel Chirico, Chairman and CEO, PVH Corp., said that the company’s decision to buy the Australian firm is aligned with PVH’s strategic priority to spread its global reach by assuming more direct control over brands’ regional licensed businesses.
He also added that PVH’s association with Gazal would now give the former enough space and position to easily capture the markets of Australia and New Zealand. The company is optimistic that the acquisition will also help benefit its fiscal 2019 revenues.
It is noteworthy that the company today has more than 38,000 associates across 40 nations.
