(Filed Under Financial and General Interest News). PVH announced an agreement to acquire full control of Gazal Corporation, a long time partner in Australia, of which it already owns a 22% stake.
Declared Emanuel Chirico, PVH’s chairman and CEO, “I’m pleased that we have agreed to acquire Gazal. PVH currently – and for many years – has had a successful business relationship with our Australian partners and would be pleased to bring them into the larger PVH family. Gazal has enhanced the market position of our brands in Australia and New Zealand and we believe the region continues to offer significant growth over the next five years and aligns with our strategic priority to expand our direct control of businesses operated under the Calvin Klein and Tommy Hilfiger brands worldwide.”
A public company based in Sydney, Gazal describes itself as “a leading apparel supplier and retailer in Australasia” that “jointly owns and manages PVH Brands Australia Pty Limited, a joint venture company with PVH.” That venture, which was established in 2014, “generated approximately A$260 million [about $184 million] in revenues on a twelve month trailing basis as of July 2018.”
PVH explained “a newly formed wholly owned subsidiary has entered into a definitive agreement” under which it would acquire the interests in Gazal that it does not already own for 6 Australian dollars per share. The net purchase price for the 78% of Gazal shares is about 125 million Australian dollars, or about $89 million at current exchange rates. PVH added the transaction is planned to be completed in the second quarter of 2019 and “is expected to result in a material increase to PVH’s 2019 earnings per share on a GAAP basis.”
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