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# PVH Corp. and The Warnaco Group, Inc.

PVH Corp. and The Warnaco Group, Inc. today announced that they have entered into a definitive merger agreement pursuant to which PVH will acquire Warnaco and holders of Warnaco common stock will receive \$51.75 in cash and .1822 of a share of PVH common stock for each share of Warnaco common stock. The transaction values Warnaco at approximately \$2.9 billion.

What is the value of goodwill?

Based on this formula: Excess = Payment (PMT) – Net Identifiable Assets (not including Goodwill) - Liabilities
Goodwill and excess of acquirers interest in the net fair value of acquirer’s identifiable assets, liabilities and contingent liabilities over cost.
How do you calculate \$51.75 in cash & .1822 of a share of PVH common stock for each share of Warnaco common stock?
Total payment = \$2.9 Billion
PVH common stock per Balance Sheet = par value \$1.00 with 70,951,932 shares outstanding.

Warnaco common stock per Balance Sheet = \$0.01par value with 53,057,174 shares outstanding.

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