Authentic Brands Group will augment its portfolio of lifestyle labels with an agreement to take the Heritage Brands off PVH’s hands.
However, the deal for brands including Izod, Van Heusen, Arrow and Geoffrey Beene gives PVH, parent to Tommy Hilfiger and Calvin Klein, a continuing connection to the Heritage group, which it said generated $1.8 billion in sales last year. The apparel giant inked a licensing deal with ABG to operate the Heritage dress furnishings business in North America.
“This acquisition was particularly attractive because of PVH’s well-established partnerships for these heritage brands,” said Jamie Salter, ABG founder, chairman and CEO. “Each brand has strong consumer recognition, global distribution anchored at leading retailers and robust product programs with best-in-class licensing partners. We believe there are significant opportunities to tap into the brands’ rich histories and to further grow their presence around the world.”
As a brand management firm, ABG will manage the labels’ intellectual property and identify expansion opportunities into new territories and categories. Centric Brands has been granted the license for Izod men’s sportswear while United Legwear & Apparel Co. landed licenses for Van Heusen and Arrow men’s sportswear, ABG said.
Currently, Izod, Van Heusen and Arrow have 60 licensing partners globally, and are known for their premium lifestyle offerings. Merchandise categories include sportswear, dress furnishings, denim, footwear, accessories, fragrance and home, among other offerings.
Izod, established in 1938, is best known for golf-inspired style in sportswear and performance, such as its short-sleeved piqúe polo shirt. More recently, the brand has shifted towards athleisure, featuring soft-washed clothes designed for comfort “while minimizing negative impacts on the environment,” according to PVH.
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Meanwhile, 100-year-old Van Heusen caters to the modern consumer with classic styles in dress shirts, sportswear, pants and tailored clothing for men. “Our product is both highly functional and stylish, created with materials and processes that are both socially and environmentally conscious as we are committed to making a positive impact on people, our industry, and our planet,” according to PVH.
ABG said the Arrow brand, launched in 1851 and known for sportswear and neckwear, has “substantial” licensing, retail and merchandise programs internationally, with operating partners in India, the Middle East, Thailand and Latin America. According to PVH’s site, global licenses include 80 territories for a broad assortment of men’s, women’s and children’s apparel and apparel-related products.
Geoffrey Beene targets the younger, digital-focused consumer with menswear dress furnishings and sportswear. The brand was one of PVH’s first licensing partners, dating back to the 1970s when the company was then known as Phillips-Van Heusen, before the apparel giant acquired the Geoffrey Beene brand in 2017.
ABG has continued to be active on the acquisitions front, having acquired Barneys New York, Forever 21, Brooks Brothers, Lucky Jeans and last month, Eddie Bauer, whether on its own or in partnership with SPARC Group.
The purchase price was not disclosed. The transaction is expected to close in the third quarter of this year, and is subject to customary closing conditions.