PVH Corp., the owner of Tommy Hilfiger and Calvin Klein, announced it has agreed to sell its Warners, Olga, and True & Co businesses to Basic Resources, a manufacturer and distributor of apparel for consumer brands.
The company stated that the total cash purchase price is $160 million, subject to change, plus an earnout with a maximum value of $10 million that is based on the net sales of some of the acquired firms for the year 2024.
When all normal closing conditions are met, the transaction is anticipated to conclude at the end of November. PVH stated that it plans to buy back shares of its common stock with the net proceeds from the deal.
“This transaction is an important next step as we continue to accelerate our focus under the PVH+ Plan to build our core brands, Calvin Klein and Tommy Hilfiger, into the most desirable lifestyle brands in the world,” said Stefan Larsson, chief executive officer of PVH.
True & Co, Warners, and Olga are a trio of US lingerie and intimates brand for women, with a focus on inclusivity across their respective ranges.
“We are thrilled to bring the Warners, Olga and True & Co brands into our portfolio of leading consumer brands,” said Salomon Harari, CEO of Basic Resources.
In its most recent trading update in August, PVH said it expects full-year 2023 revenue to increase 3 per cent to 4 per cent as compared to 2022.
