US clothing company PVH has purchased the remaining interests in Australian apparel supplier and retailer Gazal for around A$124m ($88.05m).
Announced in February this year, the deal will give PVH full control of the PVH Brands Australia, the JV, with its long-term partner in the country Gazal. PVH now owns approximately 78% of Gazal shares.
PVH Corp. chair and CEO Emanuel Chirico said: “Our decision to acquire Gazal is aligned with PVH’s strategic priority to expand our worldwide reach by assuming more direct control over our brands’ regional licensed businesses.
“By joining forces now, we believe we’re well positioned to capture the significant growth in the Australia and New Zealand markets.”
The JV has also signed employment agreements with four key members of Gazal’s management team. These agreements will allow the members to continue in their roles for at least two years.
The four executives have used approximately 25% of their interests in Gazal to subscribe for nearly 6% of the outstanding stock of the PVH subsidiary.
Chirico added: “We are pleased to welcome the Australian retailer into our PVH family and continue driving our business forward together.”
Established in 2014, PVH Brands Australia licences and operates lifestyle apparel brands of PVH, including Calvin Klein and Tommy Hilfiger, Van Heusen, Pierre Cardin, Bracks and Nancy Ganz in Australia, New Zealand and parts of Oceania.
As of July 2018, the JV’s trailing twelve months revenue was A$260m.
Grant Samuel Corporate Finance and Johnson Winter & Slattery served as financial adviser and legal adviser, respectively, to Gazal for the transaction.