PVH, Grupo Axo announce closing of Mexican JV; to be neutral to 2016 earnings
PVH Corp. and Grupo Axo announced the closing of its previously announced agreement to form a joint venture that now licenses from wholly owned subsidiaries of PVH the rights to operate and manage the distribution of Calvin Klein, Tommy Hilfiger, Warner's, Olga and Speedo brand products in Mexico. The joint venture was formed by merging PVH Mexico, S.A. de C.V., a wholly owned subsidiary of PVH and the operator of its Calvin Klein and Heritage Brands businesses in Mexico, with Baseco, S.A. de C.V., a wholly owned subsidiary of Grupo Axo and a distributor in Mexico of PVH's Tommy Hilfiger brand products. Additionally, the newly formed joint venture also has the license to operate Tommy Hilfiger footwear, as the license agreement with a third party was recently assigned to Baseco. Terms of the joint venture were not disclosed. As previously disclosed, PVH expects this transaction to be neutral to PVH's 2016 earnings.