Phillips-Van Heusen to Acquire Tommy Hilfiger
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Phillips-Van Heusen Corporation (PVH) announces a definitive agreement to acquire Tommy Hilfiger, owned by private equity firm Apax Partners for EUR 2.2 billion (approximately $3 billion) 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.
"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," says 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 to Apax -- reportedly as the brand suffered declining sales -- but Apax will now almost be profiting twofold from the sale to Phillips-Van Heusen.