New York fashion conglomerate PVH Corp. (NYSE: PVH) said Thursday it plans to sell its Speedo North America business to Pentland Group for $170 million.
Speedo USA has offices in Cypress and ranked No. 22 on last year’s Business Journal list of OC’s largest apparel companies.
The deal reunites the performance swimwear brand’s businesses with Pentland, already the parent of Speedo International Ltd., which had been licensing the trademark to PVH. It comes as PVH said it continues to focus on its Calvin Klein and Tommy Hilfiger units in what the company’s Chairman and CEO Emanuel Chirico characterized in a statement as a bid to “optimize and streamline [PVH’s] heritage brands business in the ever-evolving retail environment.”
Meanwhile, Pentland assumes ownership of Speedo North America just ahead of the 2020 Summer Olympics in Tokyo, where many Speedo-sponsored athletes will compete.
The deal is expected to close in the first quarter of PVH’s fiscal year 2020.
PVH shares were down 3% to $103.07 in afternoon trading Thursday. The company had a recent market cap of $7.5 billion.