Warnaco buys Calvin Klein licenses

The Warnaco Group Inc has agreed to purchase the licenses and corresponding wholesale and retail businesses for a number of Calvin Klein operations from Italian Fingen SpA for €240 million (£163.4 million). The deal is expected to be completed in the first quarter of 2006. The acquisition includes the Calvin Klein Jeans and accessories license for Europe and Asia and the ck Calvin Klein bridge sportswear and accessories license in Europe for 40 years. Furthermore, Warnaco will take over the global Calvin Klein Collection apparel and accessories license from Fingen between 2008 and 2013.

President and CEO of Warnaco, Joseph Gromek: “By far, the Fingen businesses that we are acquiring were at the top our list. For us, this was a very strategic move. It completes our company in terms of the Calvin Klein aspects. We are focusing on our core competencies, which is manufacturing jeans.� Calvin Klein Jeans is expected to generate sales of approximately $240 million in Europe and Asia in fiscal 2005.

The Kellwood Corp license for the Calvin Klein women's better sportswear line will not be affected by the deal. Neither will G.A.V.'s license for the ck Calvin Klein bridge sportswear business. Warnaco already had the rights to Calvin Klein underwear and has the US license for the Calvin Klein Jeans label. The addition of the new licenses is expected to help boost sales.

“We always like to have as many businesses within one licensee as we can,� said Tom Murry, president and COO of CKI. “It makes it easier to coordinate. From a strategic and a distribution standpoint, it's very advantageous.�