Brand house PVH is to acquire licensee group Warnaco in a move that will see the company become an $8bn (£4.96bn) business.
This merger agreement will bring the whole of Calvin Klein under a single company with Warnaco’s Calvin Klein Jeans and Calvin Klein Underwear licences to become part of PVH, which already owns the overall brand.
PVH, which also owns Tommy Hilfiger and Van Heusen, will place the Warnaco Calvin Klein businesses under PVH’s Calvin Klein division, which will be led by Tom Murry, president and chief executive of the brand.
The transaction, which values Warnaco at $2.9bn, is expected to close early next year. Helen McCluskey, Warnaco’s president and chief executive, is expected to join PVH’s board of directors.
This news comes after Drapers reported earlier this year that PVH would take its ck Calvin Klein apparel and accessories for Europe in-house from next year.
Emanuel Chirico, chairman and chief executive officer of PVH, said: “This is a unique opportunity to reunite the ‘House of Calvin Klein’ and reinforces our strategy to drive the global growth of Calvin Klein.”
Chirico added: “Having direct global control of the two largest apparel categories for Calvin Klein – jeans and underwear – will allow us to unlock additional growth potential of this powerful designer brand across all major product categories, geographies and distribution channels.”
Helen McCluskey, president and chief executive officer of Warnaco, said: “We look forward to the opportunities this combination brings to the continued success of Calvin Klein Jeans and Calvin Klein Underwear, the increased potential for our heritage brands, and the future for our associates.”