PVH Corp Reports Plan to Acquire Warnaco Group (PVH)


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Apparel company PVH Corp ( PVH ) announced that it will be acquiring The Warnaco Group Inc. ( WRC ) Wednesday.

The New York based company has reported that it has agreed to purchase competitor, The Warnaco Group Inc. for a cash and stock price of $2.9 billion.

PVH reported that it will pay Warnaco shareholders $51.75 in cash as well as a part of its stock price, totaling $68.43 a share. This price suggests a 25% increase over the stock's current price of $91.50.

This deal, which would make PVH one of the largest clothing companies in the world, is expected to occur in the beginning of 2013. The board of directors from both companies have approved the acquisition. Following the deal, Warnaco shareholders will own 10% of PVH's outstanding common stock.

PVH Corp shares were mostly flat during premarket trading Wednesday.

PVH Corp( PVH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks
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