PVH Expands Australian Joint Venture
PVH Corp. and Gazal are expanding the scope of their Australian joint venture with the addition of the Tommy Hilfiger, Van Heusen and Nancy Ganz businesses in the region.
The 50/50 joint venture, PVH Brands Australia, launched in February, with a license and distribution agreement for Calvin Klein (a wholly owned subsidiary of PVH) to bring the Calvin Klein Jeans and Calvin Klein Underwear collections to Australia, New Zealand and the rest of Oceania.
The expanded joint venture is expected to debut in February 2015.
The amended joint venture agreement now includes licensing and distribution for Tommy Hilfiger Europe (a wholly owned subsidiary of PVH) of the Tommy Hilfiger brand in Australia and New Zealand. The joint venture will also acquire certain assets of the existing wholesale and retail Tommy Hilfiger business in Australia, including 12 standalone retail stores.
“Australia is an important destination for Tommy Hilfiger. This arrangement enables us to more directly support the development and expansion of the Tommy Hilfiger retail and wholesale businesses, as we continue to establish Tommy Hilfiger as a premium lifestyle brand in the region,” says Daniel Grieder, chief executive officer, Tommy Hilfiger.
PVH Brands Australia will also acquire Gazal’s shirting, tailored and men’s accessories business, which is conducted under PVH’s Van Heusen and Calvin Klein brands, as well as Gazal’s owned and licensed Bracks, Pierre Cardin and Paramount brands. Gazal currently distributes the Van Heusen brand under license from PVH; this agreement will now be transferred to the joint venture.
Finally, the joint venture will also acquire Gazal’s shapewear business, which consists of the Australian and New Zealand rights to Nancy Ganz as well as the right to distribute the Spanx brand in Australia and New Zealand under license from Spanx and Gazal’s own HoldmeTight brand. As part of this deal PVH Brands Australia will also have a perpetual license with PVH for Nancy Ganz for all territories outside of Australia and New Zealand.
“The expansion of our joint venture with Gazal allows us to consolidate all our branded businesses in the Australasian market with one strong local partner,” says Manny Chirico, chairman and chief executive officer, PVH. “We believe that our joint venture is the best way to leverage the opportunities in the market and drive growth of our Calvin Klein, Tommy Hilfiger and Van Heusen brands in this part of the world.”