PVH Corp., one of the world’s largest apparel companies, and Gazal Corporation Limited, a leading apparel supplier and retailer in Australia, announced Friday they have entered into an agreement with their 50/50 joint venture, PVH Brands Australia Pty Limited, to add business in 2015, primarily by expanding its scope.
Expected to close in early February, the transaction will add the Tommy Hilfiger, Van Heusen and Nancy Ganz businesses in Australia and New Zealand to the joint venture, and Gazal’s other shirting, tailored and shapewear businesses.
Under the agreement, the joint venture will enter into a 12-year license and distribution agreement with Tommy Hilfiger Europe B.V. for Tommy Hilfiger Australia and New Zealand. The partnership will acquire certain assets of the existing wholesale and retail Tommy Hilfiger business in Australia, including 12 retail stores.
The agreement also confirms the acquisition of Gazal’s shirting, tailored and men’s accessories business, which is conducted under PVH’s Van Heusen and Calvin Klein brands. Gazal currently distributes the Van Heusen brand under license from PVH. The current license agreement will be transferred to the joint venture and extended to Dec.31, 2033.
Additionally, the group will acquire Gazal’s shapewear business, which includes the right to distribute the Spanx brand in Australia and New Zealand under license from Spanx, Inc.
Manny Chirico, PVH chairman and CEO, said, “The expansion of our joint venture with Gazal allows us to consolidate all our branded businesses in the Australasian market with one strong local partner.” He added, “We believe that our joint venture is the best way to leverage the opportunities in the market and drive growth of our Calvin Klein, Tommy Hilfiger and Van Heusen brands in this part of the world.”
Gazal executive chairman Michael Gazal, concluded, “We have great respect for PVH and are excited to be expanding our joint venture with them. Together, we have developed some dynamic growth plans for each brand in this market and we now look forward to the implementation phase.”