PVH to Form Joint Venture in Mexico
Groupo Axo will grow Calvin Klein, Tommy Hilfiger, Speedo and other brands.
PVH has partnered with Grupo Axo to form a joint venture in Mexico that will operate and manage the distribution of Calvin Klein, Tommy Hilfiger, Warner’s, Olga and Speedo brand products.
The joint venture will be created by merging PVH México, a wholly owned subsidiary of PVH and the operator of its Calvin Klein and heritage brands business, with Baseco, a wholly owned subsidiary of Axo and a distributor of PVH’s Tommy Hilfiger products.
“This strategic move allows us to maintain a direct ownership interest in our Calvin Klein and Heritage Brands businesses in Mexico, while gaining more control over our Tommy Hilfiger business in the region,” says Emanuel Chirico, chairman and chief executive officer, PVH. “Grupo Axo, which will oversee the joint venture’s day-to-day operations, is an experienced multi-channel distributor, including successfully managing our Tommy Hilfiger business in Mexico for the last 22 years. We believe that leveraging Grupo Axo’s in region expertise across our brand portfolio should ensure the long-term potential in Mexico of our brands.”
The closing is expected to occur in Q3. PVH also expects the transaction to not contribute to the company’s 2016 earnings.
“We have a long and successful relationship with Tommy Hilfiger and PVH. We are excited about the opportunity to expand our relationship to include the global megabrand, Calvin Klein, as well as the Warner’s, Olga and Speedo heritage brands,” says Andres Gomez, co-chief executive officer, Grupo Axo. “We believe all these brands have huge potential for growth in Mexico and we look forward to partnering with PVH to make that potential a reality.”