Retailers, consumers and prices
Check Out Line: Phillips-Van Heusen tries Hilfiger on for size
Check out apparel company Phillips-Van Heusen’s deal to buy fashion brand Tommy Hilfiger for about $3 billion.
Phillips-Van Heusen, also owner of the Calvin Klein label, is making the cash and stock deal, expected to close in the second quarter, to boost its presence in markets like Europe and Asia. Tommy Hilfiger is currently owned by private equity firm Apax Partners.
“Tommy Hilfiger fits all of our acquisition criteria: a strong brand, superior management, highly profitable, immediately accretive to earnings, and focused on international growth,” Phillips-Van Heusen CEO Emanuel Chirico said.
After the deal, Hilfiger (pictured with actress Hayden Panettiere during New York Fashion Week in February) will remain in his role as principal designer and visionary for the namesake brand, and Fred Gehring will continue as CEO of Tommy Hilfiger. Gehring also will take on role as CEO of PVH’s international operations and join the PVH board.
Also in the basket:
Firms Battle for Market Share (WWD, subscription required)