PVH Corp. announced Friday that is has agreed to sell the Speedo North America business to Pentland Group, the parent company of Speedo International, in a deal for $170 million in cash.
“This is an exciting and positive time for the brand, as this strategic business decision will reunite the Speedo business globally under Pentland,” Speedo Group president Geoff Barrett wrote in a statement. “We are confident that the Pentland team is best positioned to capture the full potential of the iconic brand and its influence. A global Speedo brand will be an undisputable leader in this industry in an especially exciting year with the Summer Olympics in Tokyo.”
As part of the transaction, Speedo International will license the Speedo trademark to a PVH subsidiary in North American and the Caribbean for perpetual use. The deal is expected to close in the first quarter of 2020.
“We’ve had a great partnership with PVH and they’ve done an incredible job in raising the profile of the Speedo brand and growing the business in North America during their time as licensee,” said Pentland Group’s Brand Division CEO Andy Long in a press release. “… With the Tokyo Games this year, now is the right time to bring Speedo North America back into our brand portfolio. Pentland has a strong track record of investing in people and international brands and we’re looking forward to welcoming the Speedo North America team into the Pentland family and working together on the next chapters in the Speedo success story.”
PVH, the parent company for brands like Calvin Klein, Tommy Hilfiger and Izod, had acquired Speedo’s North American arm in February 2013 with the capture of the Warnaco Group.
Pentland Group, the owner of such brands as Berghaus, Canterbury, Ellessee and SeaVees, acquired Speedo in 1991.
“This strategic announcement aligns with PVH’s goal to optimize and streamline its Heritage Brands business in the ever-evolving retail environment and focus on delivering sustainable profitable growth of its global brands, Calvin Klein and Tommy Hilfiger,” said Emanuel Chirico, Chairman and CEO of PVH Corp. “I am pleased to see Pentland Group reunite the Speedo business globally, as they are best positioned to capture the full potential of the iconic Speedo brand.”
