US-based clothing company PVH will withdraw from its Heritage Brands business after signing a definitive agreement with brand management company Authentic Brands Group (ABG).

The company will sell assets of its Heritage Brands business, including certain intellectual property, to ABG in a deal valued at around $220m subject to customary adjustment.

The deal is expected to close in the third quarter of this year subject to customary closing conditions, including regulatory approval.

Included in this transaction are the IZOD, Van Heusen, ARROW and Geoffrey Beene brand trademarks.

Following the acquisition, PVH will continue to own and operate the intimates and underwear businesses, including Warner’s, as well as the dress shirts and neckwear business.

PVH chief executive officer Stefan Larsson said: “This was a difficult decision, as we recognise that our Heritage Brands business provided the resources that laid the foundation and gave us the opportunity to build PVH into one of the largest fashion companies in the world today.

“We have been proactively optimising our Heritage Brands business over the past few years while focusing on allocating resources to higher-return businesses to maximise shareholder value.

“We believe ABG is well-positioned to develop and invest in these brands for their future success.”

ABG founder, chairman and CEO Jamie Salter said: “It’s exciting to welcome the storied Heritage Brands into the ABG portfolio.

“We intend to leverage our global partner network and brand development expertise to continue the good work PVH has done in creating a sustainable licensing business for the brands.”

PVH has updated its full-year outlook for this year, expecting its revenue to increase by between 22% and 24% compared to last year.

Last July, the company announced plans to reduce its North America office workforce by around 450 positions, or 12%, across all three brand businesses and corporate functions.