With funding provided by Apax Partners, Phillips-Van Heusen has entered into a definitive agreement to acquire Calvin Klein Inc., the retail clothing company with $3 billion in sales last year.
In the fiscal year ending February 2002, PVH earned 86 cents a share on $1.43 billion in sales, and at press time, PVH was trading in the mid $12 range.
CKI’s existing design and marketing organization will continue to operate as a separate operating unit.
Advisors to PVH were The Blackstone Group, Lehman Brothers and JP Morgan Chase.
While founder Calvin Klein will continue his association with his namesake, co-founder and New York Racing Association Chairman Barry Schwartz will resign from Calvin Klein following Phillips-Van Heusen’s $400 million purchase of the clothing and accessory giant.