US clothing giant PVH, which owns brands such as Calvin Klein and Tommy Hilfiger, has made a $124 million offer for Australian apparel supplier Gazal.
PVH has signed a definitive agreement to purchase the remaining interests at Gazal for $6 a share.
The two companies established a joint venture in 2014, PVH Brands Australia, with the firm operating the license for brands owned by PVH.
These include Calvin Klein and Tommy Hilfiger, Van Heusen, Pierre Cardin, Bracks and Nancy Ganz in Australia, New Zealand and other parts of Oceania.
It generated approximately $260 million in revenues on a twelve month trailing basis as of July 2018.
PVH CEO Emanuel Chirico praised Gazal for its work in the market.
"PVH currently, and for many years, has had a successful business relationship with our Australian partners and would be pleased to bring them into the larger PVH family.
“Gazal has enhanced the market position of our brands in Australia and New Zealand and we believe the region continues to offer significant growth over the next five years and aligns with our strategic priority to expand our direct control of businesses operated under the Calvin Klein and Tommy Hilfiger brands worldwide.”
The acquisition is currently subject to customary conditions including shareholder, court and regulatory approvals.
It is expected for completion in the second quarter of this year.