Phillips-Van Heusen to acquire Tommy Hilfiger brand
PVH will pay $2.2 billion in cash and $800 million in stock for the fashion brand. The deal is expected to close during this year's second quarter.
Tommy Hilfiger has worked in the past year to reposition itself in the digital space. ATG helped the brand merge its e-commerce store and marketing site into one destination last August. The brand also redesigned its Web site to emphasize photography and products last year.
Fred Gehring, CEO of Tommy Hilfiger, will retain his role and take on additional duties as CEO of PVH's international operations and a member of its board of directors. Founder Tommy Hilfiger will retain his role as principal designer and visionary for the brand.
PVH owns the Izod, Calvin Klein and Van Heusen brands, among others.
Tommy Hilfiger's revenue for its fiscal year ending March 31 is expected to be approximately $2.25 billion. Earnings over the same period are expected to be $280 million, excluding charges, according to a statement from PVH. The deal also includes PVH's assumption of $100 million in Tommy Hilfiger's liabilities.
Apax Partners financed $375 million of PVH's acquisition of the Calvin Klein brand in December 2002, a deal valued at $430 million.
Representatives from PVH and Apax could not be reached by press time.