American clothing company PVH Corp, the owner of brands like Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner’s, Olga and Speedo, is now exploring the Mexico market, for which it has entered into a joint venture Grupo Axo.
Under this agreement, Grupo Axo, which is a leading multi-brand company in Mexico for apparel, accessories and home brands, will get the license from wholly owned subsidiaries of PVH to operate and manage the distribution of PVH labels in Mexico. This JV comprises PVH México, SA de CV, a wholly owned subsidiary of PVH and the operator of its Calvin Klein and Heritage Brands businesses in Mexico, with Baseco, S.A. de CV, a wholly owned subsidiary of Axo and a distributor in Mexico of PVH’s Tommy Hilfiger brand products. The deal, which is subject to customary closing conditions, including regulatory approval, is expected to close early in the third quarter of 2016, terms of which have, however, not been disclosed yet. Phillips-Van Heusen Corporation expects this transaction to be neutral to its 2016 earnings on a non-GAAP basis.
“This strategic move allows us to maintain a direct ownership interest in our Calvin Klein and Heritage Brands businesses in Mexico, while gaining more control over our Tommy Hilfiger business in the region,” said Emanuel Chirico, Chairman and CEO of PVH, a 130-year-old company. “Grupo Axo, which will oversee the joint venture’s day-to-day operations, is an experienced multi-channel distributor, including successfully managing our Tommy Hilfiger business in Mexico for the last 22 years. We believe that leveraging Grupo Axo’s in region expertise across our brand portfolio should ensure the long-term potential in Mexico of our brands.”
Meanwhile, Andres Gomez, Co-Chief Executive Officer of Grupo Axo said, “We have a long and successful relationship with Tommy Hilfiger and PVH. We are excited about the opportunity to expand our relationship to include the global megabrand, Calvin Klein, as well as the Warner’s, Olga and Speedo heritage brands. We believe all these brands have huge potential for growth in Mexico and we look forward to partnering with PVH to make that potential a reality.”
Since 2016, it sells in Mexico and Chile brands like Abercrombie & Fitch, Bath & Body Works, Brooks Brothers, Brunello Cucinelli, Coach, Crate & Barrel, Emporio Armani, Guess, Kate Spade, Theory, Express, Hollister, Chaps, Loft, Rapsodia, Thomas Pink, Tommy Hilfiger, Victoria´s Secret and Promoda.
