READ MOREThe transaction, which is expected to close in early February 2015, will add the Tommy Hilfiger, Van Heusen and Nancy Ganz businesses in Australia and New Zealand to the joint venture, as well as certain of Gazal’s other shirting, tailored and shapewear businesses.
PVH and Gazal’s 50/50 joint venture, PVH Brands Australia Pty Limited, commenced operations in February 2014, with its entry into a license and distribution agreement with Calvin Klein, Inc., a wholly owned subsidiary of PVH, for Calvin Klein Jeans and Calvin Klein Underwear in Australia, New Zealand and the rest of Oceania.
Enter into a license and distribution agreement with Tommy Hilfiger Europe B.V., a wholly owned subsidiary of PVH, for Tommy Hilfiger in Australia and New Zealand. The JV will also acquire certain assets of the existing wholesale and retail Tommy Hilfiger business in Australia, including 12 stand-alone retail stores. The license and distribution agreement has a 12-year term.
Acquire Gazal’s shirting, tailored and men’s accessories business, which is conducted under PVH’s Van Heusen and Calvin Klein brands, as well as Gazal’s owned and licensed Bracks, Pierre Cardin and Paramount brands.
Gazal currently distributes the Van Heusen brand, the Australasian businesswear leader, under license from PVH. The current license agreement will be transferred to the JV and extended to December 31, 2033.
Acquire Gazal’s shapewear business, which consists of the Australian and New Zealand rights to Nancy Ganz, the Australasian market leader in this category, as well as the right to distribute the Spanx brand in Australia and New Zealand under license from Spanx, Inc., and Gazal’s own HoldmeTight brand. The JV will also enter into a perpetual license with PVH for Nancy Ganz for all territories outside of Australia and New Zealand. ■