Clothing Giant PVH Bought Warnaco For $2 Billion 900 Million

The world's largest

One of the companies, PVH Corp, announced on Wednesday that it had agreed to buy Women for about $2 billion 900 million.

And the sportswear maker Warnaco Group (WRC), so that the brand of Calvin Klein (Calvin Klein) is completely taken back.

Before that,

The production of Calvin Klein brand formal clothing and sportswear, and Warnaco has been producing and selling underwear and jeans of the same brand since 1997. By the end of 2011, the company operates 1759 Calvin Calvin stores in the world.

In addition, Warnaco also has Speedo, Warners and Olga brands.

PVH expects the combined company to generate revenue of $8 billion a year.

The company's chief executive, Emanuel Chirico, said: "

Under the agreement, PVH will pay $51.75 cash per share of Warnaco shares and 0.1822 shares of PVH common stock.

The paction valued Warnaco at $68.43 per share, a premium of 34% over the stock's closing price on Friday.

The paction has been unanimously approved by the board of directors of both sides, and is expected to be completed early next year.

After the paction is completed,

Shareholders will have about 10% of the combined company's shares. The company's current chief executive, Helen McCluskey, is expected to join the PVH board.

PVH said that excluding one-time integration costs and paction expenses, it is expected that the first year after the completion of the paction will increase its earnings per share by 35 cents, and will generate a one-time expenditure of $175 million over the next 3 years.

The company also said it had received a $4 billion 330 million financing commitment from Barclay, Merrill Lynch and Citigroup Global Market Inc.

PVH's brands include Tommy Hilfiger, Calvin Klein, Van Heusen, Izod, Arrow and G. H. G..