PVH to sell Warners, Olga and True & Co. businesses to Basic Resources for 160 million dollars cash

Fashion company PVH Corp. (PVH), which owns Calvin Klein and Tommy Hilfiger brands, announced Monday its agreement to sell Warners, Olga and True & Co. businesses to Basic Resources, a private, family-owned manufacturer of apparel for consumer brands.

The all-cash sale price is 160 million dollars, subject to adjustment. The consideration also includes an earnout based on the net sales on a portion of the acquired businesses for calendar 2024, with a maximum value of 10 million dollars.

The company expects the transaction to close at the end of November, subject to standard closing conditions.

PVH said it intends to use the net proceeds from the sale to repurchase shares of its common stock.

Stefan Larsson, Chief Executive Officer of PVH, said, "This transaction is an important next step as we continue to accelerate our focus under the PVH+ Plan to build our core brands, Calvin Klein and Tommy Hilfiger, into the most desirable lifestyle brands in the world."

In the sale, Solomon Partners, L.P. is serving as exclusive financial advisor and Lowenstein Sandler is legal counsel to PVH.(DPA)