PVH Corp. To Sell G.H. Bass Business To G-III Apparel For About $50 Mln.

(RTTNews) - Apparel company PVH Corp. (PVH) Wednesday agreed to sell substantially all of the assets of its G.H. Bass & Co. division to G-III Apparel Group Ltd. (GIII) for about $50 million in cash.

The deal is expected to close in the beginning of the fiscal fourth quarter 2013.

"G.H. Bass & Co. has been a positive and important contributor to PVH's success since we acquired the business in 1987. However, our core competencies today lie in our lifestyle apparel businesses and we see the future of PVH focused around the global growth of our designer lifestyle brands, led by Calvin Klein and Tommy Hilfiger," said Emanuel Chirico, PVH's chief executive officer.

The company expects the deal to be about $0.05 dilutive to its 2013 non-GAAP earnings per share and about $0.15 dilutive to its non-GAAP earnings per share on a full year basis.

PVH also expects to incur a pre-tax loss of about $20 million in connection with the sale of assets.

The company plans to use the net proceeds received from the deal to make additional debt prepayments in 2013.

PVH reaffirms its non-GAAP earnings per share guidance of $7.00 for the full year 2013. Analysts polled by Thomson Reuters expect earnings of $7.04 per share. Analysts' estimates typically exclude special items.

In addition, PVH now estimates its non-GAAP earnings per share for the third quarter 2013 to be about $2.25, as compared to the previous non-GAAP guidance of $2.20. Analysts expect earnings of $2.22 per share.

Meanwhile, G-III said the deal will be about $0.10 dilutive to its earnings per share for fiscal year ending January 2014 and accretive thereafter on an annual basis.