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Phillips-Van Heusen to buy Tommy Hilfiger for $3 billion
Tommy Hilfiger is being sold by private equity firm Apax partners who bought it for $1.6bn in 2006.
Phillips-Van Heusen Corp said it will buy fashion brand Tommy Hilfiger in a cash and stock deal for about $3 billion in a
bid to boost its presence in markets like Europe and Asia.
Mr Hilfiger will remain as principal designer and visionary for the brand and citing PVH as “the ideal partner to help us achieve our goals”.
The deal is made up of 1.9bn euros in cash and 276m euros of Philips-Van Heusen stock.Apax partners will remain a shareholder in the business. Philips-Van Heusen's clothing lines include Calvin Klein, Van Heusen, Arrow, IZOD and Bass. Chief executive and chairman Emanuel Chirico hopes buying Tommy Hilfiger will help them launch some of their brands internationally, "leveraging a combined global platform".
Philips-Van Heusen also expects to save $40m of cost synergies through the deal.
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