(Filed Under Fashion News). Phillips-Van Heusen Corporation (PVH), the fashion conglomerate that owns Calvin Klein, announced today that it has acquired Tommy Hilfiger B.V. through a definitive agreement. PVH agreed to purchase the company for about $3.3 billion, equivalent to about 2.2 billion Euros. Fashion brand Tommy Hilfiger produces men’s, women’s and children’s apparel and accessories including intimates and swimwear. According to PVH, with this purchase the companies have formed a business with combined revenue of approximately $4.6 billion, marking one of the largest and most profitable apparel companies worldwide.
Upon closing the transaction, Tommy Hilfiger will remain in his role as principal designer and visionary for the Tommy Hilfiger brand. Fred Gehring will continue as chief executive officer of Tommy Hilfiger, and will assume the additional responsibility of chief executive officer of PVH’s international operations. He will also join the PVH board of directors. Tommy Hilfiger, a private company, is expected to post revenues totaling approximately $2.5 billion for the fiscal year ending March 31, 2010. It is controlled by funds associated with Apax Partners L.P.
“Tommy Hilfiger fits all of our acquisition criteria: a strong brand, superior management, highly profitable, immediately accretive to earnings, and focused on international growth,” said Emanuel Chirico, chairman and chief executive officer of PVH. “We also believe that our cultures are highly compatible. All of this makes us confident that this compelling combination will generate strong revenue growth, high operating margins and sustainable free cash flow, which should enable us to reduce debt very quickly while continuing to grow the companies’ respective brands and businesses.”
Tommy Hilfiger remarked: “This is the next phase in the global evolution and expansion of the Tommy Hilfiger brand [...] I look forward to remaining actively involved in the business and believe that PVH is the ideal partner to help us achieve our goals.”
For further information, contact Michael Shaffer, executive vice president and chief financial officer of PVH, by calling (212) 381-3523.
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