Phillips-Van Heusen Corporation To Acquire Tommy Hilfiger For $3 Billion

Phillips-Van Heusen Corporation (PVH) announced a definitive agreement today to acquire Tommy Hilfiger, owned by private equity firm Apax Partners for EUR 2.2 billion (approximately $3.0 billion US) plus the assumption of EUR 100 million in liabilities.

The acquisition is expected to create one of the world's largest and most profitable apparel companies and accelerate international growth.

Phillips-Van Heusen has more than 900 stores in the United States, Europe and Asia and already owns several brands, including Calvin Klein. It also licenses several others such as Ted Baker.

"We are very pleased to be joining forces with PVH, one of the premier apparel companies in the world. The scale of the combined company in the U.S. will deliver obvious benefits for both companies, while Tommy Hilfiger's significant international presence and infrastructure offers an opportunity for PVH to introduce a number of its brands into the international market," said Fred Gehring, chief executive officer of Tommy Hilfiger. "Customers around the world love Tommy Hilfiger's classic American cool design and brand image and this transaction provides us with the perfect platform to support continued growth and success. We look forward to building on the momentum of the two companies, delivering significant growth for our customers, employees and partners long into the future."

"This is a unique opportunity to bring together two premier companies, each with iconic brands, which will deliver enhanced opportunities for our stockholders, business partners, customers and employees as we leverage a combined global platform in the years ahead," said Emanuel Chirico, Chairman and Chief Executive Officer of PVH. "During almost four years as a private company under the leadership of Fred Gehring and his team, Tommy Hilfiger has continued to gain momentum in Europe and Asia, while successfully rebuilding its business in North America, producing impressive overall performance, and generating strong profitability and free cash flow even during the recession."

In 2006, American fashion designer Tommy Hilfiger sold his company for $1.6 billion USD to Apax -- reportedly as the brand suffered  declining sales -- but Apax will now almost be profiting twofold from the sale to Phillips-Van Heusen. 

Two years ago, Apax reportedly attempted to take Tommy Hilfiger public, but those plans were apparently scuttled by the financial crisis.
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