PVH Corp. will sell its Warners, Olga and True & Co. businesses to privately-held Basic Resources in an all-cash $160 million transaction, the apparel company announced Monday.
The deal, which is expected to close at the end of November, also includes an earnout based on the net sales of the businesses during the 2024 calendar year, up to a maximum value of $10 million,. PVH will use the proceeds to repurchase shares of its common stock.
PVH CEO Stefan Larsson said in the release that the transaction helps the company with its PVH+ plan, a strategy announced in 2022 meant to boost the value of its core Calvin Klein and Tommy Hilfiger businesses.
“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,” Larsson said.
Basic Resources handles manufacturing, distribution and marketing of apparel. It already had an existing relationship with PVH for its Calvin Klein and Tommy Hilfiger brands, according to its website. It also works with Michael Kors, Cole Haan and Reebok.
“Under these powerful brands, PVH has built a business that offers innovative, solution-oriented products that strongly resonate with consumers,” Saloman Harari, CEO of Basic Resources, said in the release. “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.”
The recent deal follows a 2021 transaction in which PVH sold certain intellectual property and other assets in its heritage brands business to Authentic Brands Group. That deal included Izod, Van Heusen and Arrow.
PVH’s heritage brands business saw revenue decline 11% in the company’s most recent earnings in August, and its next earnings announcement is scheduled for Nov. 29.
The company’s multi-year growth plan for Calvin Klein and Tommy Hilfiger includes bringing the company to $12.5 billion in total revenue in 2025, among other financial targets. It recently named a new global brand president for Tommy Hilfiger, Lea Rytz Goldman, which the company said was in-line with this plan.
