PVH Brands Australia, the newly launched JV company, will have rights to operate, manage and distribute Calvin Klein brand products for a period of 20 years.

Under the JV, Gazal will retail to the PVH Brands Australia its subsidiary currently operating its Calvin Klein Underwear distribution business in Australia and New Zealand; and PVH will sell its subsidiaries currently operating the Calvin Klein Jeans businesses in Australia and New Zealand.

PVH Brands Australia is set to commence its wholesale and retail operations on 3 February 2014. The company will mainly focus on the integration, expansion and enhancement of the existing underwear and jeanswear businesses and will subsequently extend into additional product categories.

Calvin Klein CEO Tom Murry said this strategic move allows the company to directly support the development and expansion of Calvin Klein brand in Australia and New Zealand.

"With the tremendous expertise of Gazal, which has successfully managed our underwear business for many years, this partnership should ensure the long-term potential of the brand in the region," Murry added.

Both the companies expect that the deal will maximize opportunities across all products and distribution channels.

Gazal markets and manages national and international apparel brands in Australia and New Zealand, including a portfolio of local Australian and iconic global brands, including Van Heusen, the menswear brand.

Gazal executive chairman Michael Gazal said Calvin Klein is a global megabrand and they are excited to commence this joint venture.