PVH Corp., whose brands include Calvin Klein and Tommy Hilfiger, has agreed to buy rival clothier The Warnaco Group Inc. in a cash-and-stock deal worth about $2.9 billion. The deal would create one of the world's largest clothing companies and cement PVH's control of the Calvin Klein clothing brand.
Warnaco already sells Calvin Klein jeans and underwear, the brand's two largest categories, under a license and also sells brands such as Speedo, Warner's and Olga.
The deal is the second big acquisition in three years for PVH, formerly known as Phillips Van Heusen. PVH acquired Tommy Hilfiger in 2010 for $3 billion.
Both companies' stock prices got a big boost from the deal. PVH's shares jumped $18.49, or 20.2 percent, to close at $109.99 Wednesday. Warnaco shares rose $19.70, or 39 percent, to $70.58.
PVH said Wednesday it will pay Warnaco shareholders $51.75 in cash and a portion of its stock for each Warnaco share. That puts the total per-share value at $68.43, a 34 percent premium over the company's closing price on Friday, the last day markets were open before storms battered the East Coast.
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