PVH Buys CK
New York–based shirt maker Phillips-Van Heusen (PVH) purchased Calvin Klein Inc. for $400 million in cash, $30 million in stock, plus royalties estimated to be worth more than $200 million, in a bid to build PVH into a large brand empire. The deal gives PVH instant access to Calvin Klein’s designer cacheacute; and in return, Calvin Klein will become a public company. Klein and his staff will continue to operate Calvin Klein as a separate business and Klein will head up strategic planning, brand positioning, design and marketing. PVH plans to launch a mid-tier men’s sportswear company within the next few years and also is investigating launching a new women’s sportswear line.