PVH to sell Heritage Brands business to Authentic Brands Group

PVP Corp. has announced it has entered a definitive agreement to sell “certain intellectual property and other assets” of its Heritage Brands business to Authentic Brands Group (ABG) for $220m (£158m), which includes the Izod, Van Heusen, Geoffrey Beene and Arrow brands, to focus on the global growth of its Calvin Klein and Tommy Hilfiger brands.

The transaction is expected to be finalised in the third quarter of PVH’s 2021 year, and is subject to customary closing conditions, including regulatory approval.

Stefan Larsson, CEO of PVH Corp. commented: “This was a difficult decision, as we recognise that our Heritage Brands business provided the resources that laid the foundation and gave us the opportunity to build PVH into one of the largest fashion companies in the world today.

“We have been proactively optimising our Heritage Brands business over the past few years, while focusing on allocating resources to higher-return businesses to maximise shareholder value. We believe ABG is well positioned to develop and invest in these brands for their future success.

“We continue to execute on our accelerated recovery priorities across our businesses globally. This transaction reflects our commitment to driving our next chapter of sustainable, profitable growth – focused on the Calvin Klein and Tommy Hilfiger brands, our international markets, driving product strength with increased pricing power and margin expansion, and winning in the marketplace through super-charging ecommerce.”

Jamie Salter, Founder, Chairman and CEO of ABG, added: “It’s exciting to welcome the storied Heritage Brands into the ABG portfolio. We intend to leverage our global partner network and brand development expertise to continue the good work PVH has done in creating a sustainable licensing business for the brands.”

ABG is committed to transforming brands by delivering compelling product, content, business and immersive experiences. Its portfolio of brands includes Eddie Bauer, Frye, Volcom, Nautica, Forever 21, Juicy Couture, Nine West and Tretorn.