PVH Corp., the parent company of Calvin Klein, is planning to sell trademarks for Arrow, Geoffrey Beene, Izod and Van Heusen to Authentic Brands Group in a $220 million deal.
The decision to sell off the trademarks comes as PVH Corp. is looking to focus on its Calvin Klein and Tommy Hilfiger division.
Under the terms of the deal, Authentic Brands Group, the parent company of Forever 21 and Brooks Brothers, will become the new owner of some of the intellectual property rights and other assets of the three brands, Reuters reported. PVH will still own and operate the intimate wear, dress shirts and neckwear business, however.
The deal is expected to close in the third quarter of this year.
With the sale underway, PVH has readjusted its earnings outlooking. The company is now expected an annual sales growth of 22 percent to 24 percent, down from its previous forecast of 24 percent to 26 percent.