US-based clothing retailer PVH is selling its Warners, Olga and True & Co businesses to Basic Resources, an apparel manufacturer and distributor for consumer brands.
The transaction has been finalised for an all-cash purchase price of $160m and is subject to adjustments in future.
It also includes an additional earnout, which is based on the calendar year 2024 net sales on a specific portion of all the acquired businesses, with a maximum limit of $10m.
The latest move comes as PVH continues to focus on the growth of its core brands Calvin Klein and Tommy Hilfiger.
This growth strategy is a part of the company’s PVH+ Plan to strengthen core brands.
PVH CEO Stefan Larsson said: “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.
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“We know the Basic Resources team well as a longstanding PVH partner and are confident they are the right company to help grow these brands and ensure their continued success over the long term.”
PVH said it will use the net proceeds from this deal to repurchase shares of its common stock.
The deal is scheduled to be completed by the end of this month and is dependent on certain standard closing conditions.
PVH’s exclusive financial advisor and legal counsel for this transaction are Solomon Partners and Lowenstein Sandler, respectively.
Sills Cummis & Gross is serving as Basic Resources’ legal advisor.
Basic Resources CEO Salomon Harari said: “We are thrilled to bring the Warners, Olga and True&Co brands into our portfolio of leading consumer brands.
“Under these powerful brands, PVH has built a business that offers innovative, solution-oriented products that strongly resonate with consumers.
“We look forward to welcoming team and leveraging our resources and expertise in market to drive continued growth by offering customers well-designed, high-quality products.”
In 2021, PVH signed an agreement to sell its Heritage Brands business to Authentic Brands Group (ABG).