Polo Ralph Lauren Corp. has agreed to pay $355 million to buy back the Polo Jeans business for men's and women's casual apparel and sportswear in the United States from Jones Apparel Group and settle all outstanding litigation with the clothing maker.
Polo said the decision to buy back the Polo Jeans business would allow it to strengthen its denim jeans business in the United States.
"We already have a strong denim business in Asia and Europe, and with direct ownership of the Polo Jeans business in the United States we will continue to invest in design and infrastructure to leverage our global jeans and denim capabilities," said Roger Farah, president and chief operating officer. "We have been successful in integrating new merchandise categories and new geographies as we continue to increase our direct ownership on a worldwide basis and this transaction is consistent with that strategic direction."
Jones ones Apparel said the sale would allow it to focus on increasing shareholder value. The company, whose apparel brands include Anne Klein, Nine West and Gloria Vanderbilt, had sold clothing under the Polo Jeans Company brand name under license from Polo.
Owning the Polo Jeans license ''created uncertainty'' for Jones, since Polo had the contractual right to buy back the license in 2010 at 80% of market value, the company said.
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