California Necktie Company Sold
Phillips–Van Heusen Corp. is getting into the necktie business.
The $2 billion New York company, which is one of the country’s largest apparel firms, is acquiring privately held Superba Inc., a Los Angeles company that makes high-end neckwear under such designer and brand names as Nautica, Perry Ellis, Ted Baker, Michael Kors, Jones New York and DKNY.
Phillips–Van Heusen is acquiring the tie company for $110 million, in an all-cash transaction, plus an earn-out over three years that has a maximum value of $70 million. The deal is expected to close Jan. 1, 2007.Superba is known for its hand-tailored neckties offered through its Insignia division, and its machine-made neckwear sold through its Superba division. Current year sales are expected to be $140 million, according to a press release issued by Phillips–Van Heusen.
“This combination is all about growing our business over the long term. PVH is a leader in implementing the multiple brand, multiple channel and multiple price point strategy we have been using in the neckwear category,” said Superba Chief Executive Mervyn Mandelbaum. “We believe they can bring us to the next level of performance through the strength of their brand management.”
Emanuel Chirico, chief executive officer of Phillips–Van Heusen, said the Superba acquisition allows his company to grow by layering in a new product category. —Deborah Belgum
