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The deal, which sees the trademarks of Izod, Van Heusen, Arrow and Geoffrey Beene go ABG, confirms a May 26 report in WWD that the brand house was interested in picking up businesses from PVH’s portfolio.
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The cash deal is expected to close in the third quarter and is subject to the customary closing conditions.
Stefan Larsson, chief executive officer of PVH, said: “This was a difficult decision, as we recognize 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 optimizing our Heritage Brands business over the past few years, while focusing on allocating resources to higher-return businesses to maximize shareholder value. We believe ABG is well positioned to develop and invest in these brands for their future success.”
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.”
This marks one more deal for Salter, who has been building a branded empire, snatching up Barneys New York, Forever 21, Brooks Brothers and many more.
PVH will continue to own and operate the intimates and underwear businesses led by Warner’s and continue to operate its dress shirt and neckwear business. Centric Brands and United Legwear & Apparel Company will be operating parts of the Izod, Van Heusen and Arrow businesses under license.
Larsson, who took charge of PVH from longtime CEO Manny Chirico in February, has been moving the company into “an accelerated recovery phase” as vaccinations help the U.S. and Europe start to bounce back from COVID-19.
His strategic plan has the company looking to drive brand relevance, take profitable market share and strengthen its platform capabilities.
Larsson has said that as the company follows that path, it is also becoming “more demand and data-driven,” which will lead to a business that creates value “in a more systematic and repeatable way.”
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