PVH Corp completes acquisition of Australian partner Gazal
PVH Corp announced on Friday that it has completed its acquisition of long-term partner Gazal Corporation Limited, a deal which gives the American apparel group full control of its brands in Australia.
Through the transaction, PVH has acquired the approximately 78% of the shares in Gazal not previously owned by the group, as well as PVH Brands Australia Pty Limited, the joint venture between the two companies through which PVH’s brands, including Calvin Klein and Tommy Hilfiger, are licensed in Australia.
Four key managers at Gazal and PVH Brands Australia have signed employment agreements and should remain in their current positions for a period of at least two years.
“Our decision to acquire Gazal is aligned with PVH’s strategic priority to expand our worldwide reach by assuming more direct control over our brands’ regional licensed businesses. By joining forces now, we believe we’re well positioned to capture the significant growth in the Australia and New Zealand markets,” said PVH Corp Chairman and CEO Emanuel Chirico in a release. “We are pleased to welcome Gazal into our PVH family and continue driving our business forward together.”
It’s been a busy couple of months at PVH, which, having recently appointed former Ralph Lauren CEO Stefan Larsson to the newly created role of president, reported significantly reduced first-quarter net earnings of $82 million on Thursday, as comparable sales dropped across its flagship Tommy Hilfiger and Calvin Klein labels.
Earlier in the month PVH also announced the appointment of its first ever global chief digital officer, Marie Gulin-Merle, as part of its efforts to transform its business, while April ended with the news that the New York-based fashion group had entered into a licensing deal with Nike to produce the sportswear giant’s men’s underwear.
The acquisition of Gazal and PVH Brands Australia is expected to result in a material increase in PVH Corp’s earnings per share in fiscal 2019.
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