(
)
Nothing will come between Manny Chirico and his Calvins anymore.
The CEO of PVH, the New York-based company that owns Calvin Klein, yesterday inked a $2.9 billion deal to buy Warnaco, the firm that’s licensed to make the designer’s jeans and underwear — first made spectacularly popular when hawked in decades past by Brooke Shields and Mark Wahlberg.
Long anticipated by fashion insiders, the cash-and-stock deal will not only unite the various businesses of the Calvin Klein brand, but also bring them under the same roof as Tommy Hilfiger, which PVH acquired for $3 billion in 2010.
Chirico said PVH’s integration of Tommy Hilfiger — as well as the recent payment of $1 billion in debt — gave him confidence to pull the trigger on the Warnaco acquisition.
“This is a unique opportunity to reunite the ‘House of Calvin Klein’ and reinforces our strategy to drive the global growth of Calvin Klein,” Chirico said.
The deal will create one of the world’s largest clothing companies, with revenue of $8 billion. PVH also owns the Izod and Arrow labels, while Warnaco’s other properties include the license for Speedo swimwear in North America and Warner bras.
Warnaco, likewise, has opened large chains of Calvin Klein stores in Europe and Asia. Some of those stores will begin carrying the Hilfiger brand once the deal closes, executives said.
Shares of both companies surged on the news. PVH’s stock jumped 20 percent to $109.99; Warnaco shares rose 39 percent, to $70.58.
The price of the deal — at roughly $68.43 — is a 34 percent premium over Warner’s closing price on Friday, the last day markets were open before storms battered the East Coast.
Rumors had circulated in recent weeks that Warnaco was gearing up for a major transaction. But in recent months, banking sources said Warnaco pondered acquiring other companies itself, including a recent flirtation with the J Brand denim label.