If media reports are anything to go by, Authentic Brands Group (ABG) is all set to acquire PVH’s heritage brands for US $ 220 million.
If the deal gets through, then ABG will end up owning and managing intellectual property of men’s sportswear brand Izod, besides Van Heusen, Arrow and Geoffrey Beene.
Notably, ABG will also acquire the 60 licensing agreements amongst the aforementioned brands in addition to taking over brands’ marketing initiatives.
Meanwhile, PVH plans to use the sale proceedings to buy back its own stock.
Also, the deal – which is expected to close in the third quarter of the year – will see PVH continue to own and run the intimates and dress shirts business.
In a way, PVH’s decision to sell off some of its heritage brands is not surprising as the clothing conglomerate has been lately focusing on its best performers.
In contrast, ABG has been buying trademarks in apparel sector to build a big empire of brand names. Both have their own business strategies…
In recent times, ABG bought Lucky Brand, Brooks Brothers and Eddie Bauer and is now eyeing a possible IPO later this year.
Stay connected for more on the same!