PVH Corp. to Sell Warners, Olga and True & Co. Businesses to Basic Resources
November 13 2023 - 7:30AM
Business Wire
Reflects Continued Focus on Global Growth of
Calvin Klein and TOMMY HILFIGER Brands Under PVH+ Plan
PVH Corp. (NYSE:PVH) and Basic Resources, a private,
family-owned organization that manufactures and distributes apparel
for leading consumer brands, today announced that Basic Resources
will acquire PVH’s Warners, Olga and True & Co. businesses. The
all-cash purchase price is $160 million, subject to adjustment,
plus an earnout based on the net sales on a portion of the acquired
businesses for calendar 2024, with a maximum value of $10 million.
The transaction is expected to close at the end of November,
subject to standard closing conditions.
“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,” said Stefan Larsson, Chief Executive Officer
of PVH. “I want to thank our teams for building Warners, Olga and
True&Co into the beloved brands they are today. 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.”
“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 the team and leveraging our resources
and expertise in the market to drive continued growth by offering
customers well-designed, high-quality products,” said Salomon
Harari, CEO of Basic Resources.
PVH intends to use the net proceeds from the transaction to
repurchase shares of its common stock.
Advisors
Solomon Partners, L.P. is serving as exclusive financial advisor
and Lowenstein Sandler is legal counsel to PVH on the transaction.
Sills Cummis & Gross is legal advisor to Basic Resources.
About PVH Corp.
PVH is one of the world’s largest and most admired fashion
companies, connecting with consumers in over 40 countries. Our
global iconic brands include Calvin Klein and TOMMY HILFIGER. Our
140-year history is built on the strength of our brands, our team
and our commitment to drive fashion forward for good. That’s the
Power of Us. That’s the Power of PVH.
About Basic Resources
Established in 1993, Basic Resources is a global leader in the
manufacturing, distribution, and marketing of high-quality basic
apparel. As a trusted partner for many of the world’s most
prominent brands, Basic Resources focuses on connecting customers
with the products and brands they love in the rapidly changing
global marketplace.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: Forward-looking statements in this press
release, including, without limitation, statements relating to PVH
Corp.’s (the “Company”) future plans objectives, expectations and
intentions are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be
predicted with accuracy and some of which might not be anticipated,
including, without limitation, (i) the Company’s plans, objectives,
expectations and intentions are subject to change at any time at
the discretion of the Company; (ii) that the conditions to the
closing of the transaction are not satisfied; (iii) potential
adverse reactions or changes to business relationships resulting
from the announcement or completion of the transaction; (iv)
uncertainties as to the timing of the transaction; (v) unexpected
costs, charges or expenses resulting from the transaction; (vi)
litigation relating to the transaction; (vii) the Company may be
considered to be highly leveraged and uses a significant portion of
its cash flows to service its indebtedness, as a result of which
the Company might not have sufficient funds to operate its
businesses in the manner it intends or has operated in the past;
and (viii) other risks and uncertainties indicated from time to
time in the Company’s filings with the Securities and Exchange
Commission (“SEC”).
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version on businesswire.com: https://www.businesswire.com/news/home/20231113197779/en/
Investor: Sheryl Freeman InvestorRelations@pvh.com
Media: Communications@pvh.com
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