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Philips-Van Heusen Acquires Arrow

By FashionUnited

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Men's clothing manufacturer Phillips-Van Heusen Corp. agreed to acquire the Arrow brand worldwide and related licenses from Cluett American Group for about USD70 million. Van Heusen, whose brands include Calvin Klein, has operated the men's Arrow dress shirt and sportswear businesses in the U.S. since 2000, under a long-term licensing agreement with Cluett, and sublicenses the boys' shirt and sportswear businesses. The lines generate about $160 to $170 million in annual sales.

The acquisition, which is expected to close by year's end, is expected to add to Van Heusen's earnings in 2005. For the third quarter ended Oct. 31, the company reported a 57% jump in income, to $26.7 million. Shares of Van Heusen rose as much as 2.7% during early trading. They ended up 2.6%, at $26.88. Both Van Heusen and Cluett are based in Manhattan.

Phillips