Calvin Klein consolidates its brands

Calvin Klein has brought all of its brands, including its ready-to-wear, under one

roof, through the consolidation of PVH Corp. The American fashion giant acquired the brand in 2003, with Warnaco Group, which holds the licences for its denim and underwear labels.

The current deal is valued at 2.9 billion dollars (1.7 billion pounds), this year’s biggest clothing-industry acquisition.

“The conversations started, I would say, almost eight years ago,” PVH chairman and CEO Emanuel Chirico said. “There has been constant dialogue between the companies, ever since we bought Calvin Klein in 2003.”

Warnaco’s president and CEO, Helen McCluskey, will join PVH’s board but will cease her management responsibilities. “The offer that was put in front of us through a series of negotiations was so compelling for both our shareholders, as well as the business, that the board evaluated the offer with outside counsel and determined that, for our shareholders, this was really a fantastic outcome,” McCluskey stated. “As for the business itself, we know we can accelerate the strategies that were put in place, and realise the full potential more quickly than we could have done, standalone.”