New York City-based PVH Corp. has entered into a definitive agreement to sell its Speedo North America business to Pentland Group, a parent company of Speedo International Ltd. The Speedo trademark is licensed to a PVH subsidiary for perpetual use in the United States and the Caribbean. The sale, worth $170 million in cash and subject to a working capital adjustment, is contingent upon customary closing conditions and is expected to close in the first quarter of PVH’s fiscal 2020 year.
“This strategic announcement aligns with PVH’s goal to optimize and streamline its Heritage Brands business in the ever-evolving retail environment and focus on delivering sustainable profitable growth of its global brands, CALVIN KLEIN and TOMMY HILFIGER,” said Emanuel Chirico, chairman and CEO, PVH Corp. “I am pleased to see Pentland Group reunite the Speedo business globally, as they are best positioned to capture the full potential of the iconic Speedo brand.”
Andy Long, CEO of Pentland Group’s Pentland Brands division, said: “We’ve had a great partnership with PVH and they’ve done an incredible job in raising the profile of the Speedo brand and growing the business in North America during their time as licensee. With the Tokyo Games this year, now is the right time to bring Speedo North America back into our brand portfolio.”