PVH Corp to buy apparel firm Warnaco Group for $2.9 billion
31 Oct 2012
PVH Corp the world's largest shirt and neckwear company, (PVH) today agreed to buy apparel firm Warnaco Group Inc, for about $2.9 billion, in order to bring Calvin Klein-branded apparel under its total control.
Manhattan-based PVH, owner of the Tommy Hilfiger brand, will pay $51.75 in cash and 0.1822 of PVH share for each Warnaco share, valuing the company at approximately $2.9 billion.
The offer is worth $68.43 per Warnaco share, a 34-per cent premium to Warnaco's last closing price of $50.88.
The acquisition, which has been approved by the boards of both companies, is expected to close in early 2013, at which time former Warnaco shareholders will own approximately 10 per cent of PVH.
PVH expects synergies of around $100 million and one-time costs of approximately $175 million over three years.
New York-based Warnaco is a leading global apparel company, which designs and sells men's, women's and children's sportswear and accessories, intimate apparel, and swimwear under owned and licensed brands as Calvin Klein, Speedo, Chaps, Warner's and Olga.
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