PVH on Thursday announced a new, wholly-owned subsidiary to acquire the interests in Gazal that it doesn’t already own for $6 a share. The closing, which is subject to shareholder, court and regulatory approvals, is expected to occur in the second quarter of 2019.
PVH has operated a joint venture with Gazal since 2014. PVH Brands Australia holds the licences for PVH’s Calvin Klein, Tommy Hilfiger and Van Heusen brands, as well as the Pierre Cardin, Bracks and Nancy Ganz brands in Australia, New Zealand and other parts of Oceania, and generated approximately $270 million in revenue over the 12 months to July 2018.
“I’m pleased that we have agreed to acquire Gazal. PVH currently – and for many years – has had a successful business relationship with our Australian partners and would be pleased to bring them into the larger PVH family,” Emanuel Chirico, PVH Corporation’s chairman and CEO said.
“Gazal has enhanced the market position of our brands in Australia and New Zealand and we believe the region continues to offer significant growth over the next five years and aligns with our strategic priority to expand our direct control of businesses operated under the Calvin Klein and Tommy Hilfiger brands worldwide.”
Over the past year, the joint venture has launched dedicated e-commerce sites for Calvin Klein and Tommy Hilfiger in Australia and opened new standalone stores for the brands, as well as Van Heusen. Gazal at the time told investors the would minimise its exposure from the closure of Myer stores.
Gazal has been asked for comment.