- Note 10/31/12: LONDON — The fashion company PVH Corporation agreed to acquire the Warnaco Group in a $2.9 billion deal, bringing various Calvin Klein brands under one corporate umbrella.
- Warnaco, which is based in New York and controls the Calvin Klein jeans and underwear licenses.
- The combined cash-and-stock deal is worth $68.43, a 34 percent premium on Warnaco’s closing share price on Friday. Trading in New York was closed on Monday and Tuesday because of Hurricane Sandy.
Shares of apparel maker Warnaco Group Inc. (WRC, $49.99, +$7.43, +17.46%) surged after second-quarter earnings fell less than analysts feared. "There were more than enough positive signs in terms of Europe, inventories, increased cost savings and a return of prominence for Calvin Klein denim," said Brean Murray analysts. Calvin Klein parent PVH Corp. (PVH, $83.48, +$4.62, +5.86%) is also up on the news. Warnaco is PVH's largest licensee, says C.L. King analyst Steven L. Marotta, so it's not uncommon for the stocks to be "somewhat tethered together directionally.
No comments:
Post a Comment