On a pro forma basis, the merged company’s revenues will top $8 billion. The merger is subject to the usual regulatory reviews and shareholder approvals, and is expected to close in early 2013.
PVH’s CEO said that the deal will reunite two Calvin Klein brands under one roof and “reinforces our strategy to drive the global growth of Calvin Klein.” He also noted:
Having direct global control of the two largest apparel categories for Calvin Klein– jeans and underwear – will allow us to unlock additional growth potential of this powerful designer brand across all major product categories, geographies and distribution channels.
PVH also boosted its third-quarter and full-year adjusted EPS guidance “to be at least at the top end of its guidance range.” That previously announced range for the third quarter is $2.28 to $2.30 and for the full year is $6.32 to $6.37.
Shares of PVH are up 19% at $108.88 in a 52-week range of $62.81 to $112.47. Warnaco’s shares are up 38.3% at $70.39 after posting a new 52-week high of $71.41 earlier this morning. The prior range was $39.19 to $60.69.
Warnaco’s lofty share price could indicate that investors might be anticipating a better offer.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.