PVH completes US Speedo sale, global owner Pentland now takes holistic view
PVH’s sale of Speedo’s North American operations to UK-based Pentland is now complete, with the company having bought the unit from apparel giant PVH in a deal originally announced in January.
Pentland Group, which is the parent company of Speedo International Limited, had said it was paying $170 million in cash for the brand, subject to a working capital adjustment, and it seems there have been no changes to that agreement since then.
PVH said the proceeds from the transaction will further bolster its core balance sheet strength and add to its liquidity position that stands now at over $1.3 billion in cash and available borrowings.
It added that the decision to reunite the Speedo business globally “allows for the brand’s stewardship by Pentland to be holistic and comprehensive”.
It means PVH can focus more time and attention on its star brands Calvin Klein and Tommy Hilfiger, while Pentland can take a more global view of Speedo. Pentland has particular strengths in sports and outdoor brands and also owns Berghaus, Canterbury, Ellesse and SeaVees. It acquired Speedo outside of North America in 1991.
Andy Long, CEO of the Pentland Brands division, said: “The completion of the Speedo North America acquisition, during these uncertain times, demonstrates our long-term commitment to the business and our passion for building a truly global brand. We’re looking forward to welcoming the team to the Pentland family and, while our current priority is the health and wellbeing of all our employees, this acquisition will allow us to offer our customers a stronger global brand proposition when demand resumes”.
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