Parent company of Tommy Hilfiger, Calvin Klein unloads several brands

PVH Corp. is exiting its Heritage Brands business as it focuses on its two powerhouse brands. 

PVH Corp. has entered into a deal to sell its Heritage Brands business — which includes the Izod, Van Heusen, Arrow and Geoffrey Beene brand trademarks — to Authentic Brands Group for $220 million. The transaction is expected to close in the third quarter.

“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,” said PVH CEO Stefan Larsson. “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 e-commerce.”

As the new owner, Authentic Brands will assume all licensing partnerships and marketing initiatives for all the Heritage brands. Through a license agreement with Authentic Brands, PVH Corp. will continue to operate all of the brands’ dress furnishings businesses in North America. 

Additionally, Centric Brands has been granted the license for Izod men’s sportswear and United Legwear & Apparel Company has been granted the licenses for Van Heusen and Arrow men’s sportswear.

Authentic Brands Group has been steadily expanding its brand portfolio, which now includes Barneys New York, Forever 21, Brooks Brothers and many more.

“This acquisition was particularly attractive because of PVH’s well-established partnerships for these heritage brands,” said Jamie Salter, founder, chairman and CEO of ABG. “Each brand has strong consumer recognition, global distribution anchored at leading retailers and robust product programs with best-in-class licensing partners. We believe there are significant opportunities to tap into the brands’ rich histories and to further grow their presence around the world.”