Calvin Klein and business partner Barry Schwartz have finally done it.
And Phillips-Van Heusen has emerged triumphant, winning the spoils of Calvin Klein Inc.
PVH, with backing from private equity firm Apax Partners, will buy Calvin Klein for $400 million in cash, $30 million in PVH stock, plus warrants and financial incentives – totaling about $700 million for Klein and Schwartz, as first reported by The Post.
“This is my dream to do this kind of deal,” Calvin Klein told The Post. “Barry and I spent many, many years building the brand, and we realized you have to be public or be with a company that allows you to build the brand the way it needs to be built,” he said. “This seems to be the perfect fit.”
The deal follows a long courtship. “We began conversations two years ago,” said Bruce Klatsky, Chairman and Chief Executive Officer of PVH. But in recent months when negotiations heated up as others like VF Corp. joined the party, Klatsky said, “in PVH fashion, we were unintimidated by others.”
The deal signifies a huge move for PVH, which is primarily known for it’s men’s dress-shirt business.
“Without a doubt, this is the greatest day of my professional life,” Klatsky said.
“We wanted to buy a great brand and that’s exactly what we did. We bought the No. 1 brand on the planet,” he said. “What excited us even more is the opportunity for growth.”
PVH will operate Calvin Klein as a separate division with President Tom Murray continuing in that position. The company plans to launch a men’s sportswear collection immediately. Women’s will follow.