Global apparel company PVH Corp. (PVH:NYSE) yesterday announced that it has "completed the sale of its Speedo North America business to Pentland Group, parent company of the Speedo brand, for $170 million in cash, subject to a working capital adjustment." The firm advised that the net transaction proceeds will further strengthen the company's balance sheet and add to its liquidity position, which now stands at greater than $1.3 billion in cash and available credit facilities.
The company's Chairman and CEO Manny Chirico commented, "The decision to reunite the Speedo business globally allows for the brand's stewardship by Pentland to be holistic and comprehensive...This transaction aligns with PVH's goals of optimizing our Heritage Brands business in the ever-evolving retail environment and focusing on long-term growth of our global brands Calvin Klein and Tommy Hilfiger."
The firm noted that the sale of the North American Speedo business was first announced in January of this year. The company stated that the Pentland Group originally acquired Speedo in 1991 and directly and through licensing partnerships such as PVH has developed it into "the world's leading performance swimwear brand." The company advised that following the purchase, Pentland will now operate the Speedo businesses worldwide.
Andy Long, CEO of Pentland Group's Pentland Brands division, remarked, "The completion of the Speedo North America acquisition, during these uncertain times, demonstrates our long-term commitment to the business and our passion for building a truly global brand. We're looking forward to welcoming the team to the Pentland family and, while our current priority is the health and wellbeing of all our employees, this acquisition will allow us to offer our customers a stronger global brand proposition when demand resumes."
PVH Corp. is headquartered in New York, N.Y., and is one of the largest and best known global fashion and apparel makers. The company listed that it has about $9.9 billion in annual revenues and employs more than 40,000 people in greater than 40 countries. The company's portfolio of brands include Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, Arrow, Warner's, Olga, Geoffrey Beene and True&Co. intimates.
The Pentland Group is a privately owned global company and additionally owns several other large brands including Berghaus, Canterbury, Ellesse, Endura, Mitre and SeaVees. The company owns and invests primarily in retail and wholesale businesses in the sports, outdoor and sports fashion sectors and is also a majority shareholder in JD Sports Fashion Plc, which operates 2,500 stores across 18 countries.
PVH Corp. has a market capitalization of around $2.8 billion with approximately 70.88 million shares outstanding and a short interest of about 3.2%. PVH shares opened 10% higher today at $43.68 (+$3.97, +10.00%) over yesterday's $39.71 closing price. The stock has traded today between $43.68 and 49.29 per share and is presently trading at $47.27 (+$7.56, +19.04%).[NLINSERT]
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