PVH Corp. to Acquire Tommy Hilfiger Men’s Tailored Clothing Business for North America from Marcraft
NEW YORK–(BUSINESS WIRE)–Jan. 24, 2017– PVH Corp. (NYSE:PVH) announced today that it has entered into an agreement to acquire the licensed Tommy Hilfiger men’s tailored clothing business for North America from Marcraft Clothes, Inc. Marcraft operates the business under license from Tommy Hilfiger Licensing LLC, a wholly owned subsidiary of PVH. As part of the transaction, PVH will acquire certain assets related to the licensed business and the license agreement would be terminated effective December 31, 2017. PVH intends to consolidate the North America men’s tailored businesses for all of its brands under one partner, Peerless Clothing International, Inc., beginning January 2018. Terms of the transaction were not disclosed.
Emanuel Chirico, Chairman and CEO of PVH said, “We thank the Marcraft team for its partnership and for building a successful men’s tailored clothing business for the Tommy Hilfiger brand in North America. However, we believe it best serves the needs of our Company and brands to have all of the men’s tailored businesses under the direction of one partner.”
“We believe our longstanding relationship with Tommy Hilfiger and PVH has allowed us to drive the growth of the Tommy Hilfiger men’s tailored business in North America and our overall business over the last eight years,” said Gary Brody of Marcraft. “We believe the expertise we have developed will serve us well as we continue to operate our other existing businesses and identify future opportunities for growth,” said Jeffrey Brody, of Marcraft.
About PVH Corp.
With a history going back over 130 years, PVH has excelled at growing brands and businesses with rich American heritages, becoming one of the largest apparel companies in the world. We have over 30,000 associates operating in over 40 countries and over $8 billion in annual revenues. We own the iconic Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Speedo*, Warner’s and Olga brands, and market a variety of goods under these and other nationally and internationally known owned and licensed brands.
*The Speedo brand is licensed for North America and the Caribbean in perpetuity from Speedo International, Limited.
About Marcraft Clothes, Inc.
Marcraft Apparel Group is a privately held men’s tailored clothing company in the United States, with over 40 years of experience sourcing branded and private label suits, suit separates, sport coats, pants, overcoats and raincoats. The company provides expertise in piece goods, product design and product development as well as product packaging and marketing. Marcraft has licenses with Kenneth Cole, Ben Sherman, Karl Lagerfeld, Bruno Magli, GH Bass and Jones New York.
PVH CORP. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements made in this press release, including, without limitation, statements relating to PVH Corp.’s future earnings, plans, strategies, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company, including that the Company may not conclude the intended purchase from Marcraft Clothes, Inc. or consolidate the men’s tailored businesses under its brands in North America; (ii) the levels of sales of the Company’s licensees at wholesale and retail, and the extent of discounts and promotional pricing in which the Company’s licensees and other business partners are required to engage, all of which can be affected by weather conditions, changes in the economy, fuel prices, reductions in travel, fashion trends, consolidations, repositionings and bankruptcies in the retail industries, and other factors; (iii) civil conflict, war or terrorist acts, the threat of any of the foregoing, or political and labor instability in any of the countries where the Company’s licensees’ or other business partners’ products are sold, produced or are planned to be sold or produced; (iv) disease epidemics and health related concerns, which could result in closed factories, reduced workforces, scarcity of raw materials and scrutiny or embargoing of goods produced in infected areas, as well as reduced consumer traffic and purchasing, as consumers limit or cease shopping in order to avoid exposure or become ill; (v) the failure of the Company’s licensees to market successfully licensed products or to preserve the value of the Company’s brands, or their misuse of the Company’s brands and (vi) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
The Company does not undertake any obligation to update publicly any forward-looking statement, whether as a result of the receipt of new information, future events or otherwise.
Source: PVH Corp.