Phillips-Van Heusen Corp. to Acquire Tommy Hilfiger for $3 Billion

Phillips-Van Heusen Corp. to Acquire Tommy Hilfiger for $3 Billion
March 15, 2010

Phillips-Van Heusen Corp. (PVH) announced a definitive agreement to acquire Tommy Hilfiger B.V., which is controlled by funds affiliated with Apax Partners L.P., for about $3 billion plus the assumption of liabilities. According to PVH, the combination will create one of the world's largest and most profitable apparel companies--a global business with combined revenue of approximately $4.6 billion. The closing of the transaction is subject to receipt of financing and other customary conditions, including receipt of required regulatory approvals, which PVH does not anticipate difficulty in obtaining. The transaction does not require a PVH stockholder vote and is expected to close during PVH's fiscal 2010 second quarter.

"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," said Emanuel Chirico, chairman and CEO 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."

Upon the closing of the transaction, Tommy Hilfiger will remain in his role as principal designer and visionary for the Tommy Hilfiger brand, which has about 1,000 stores globally. Fred Gehring will continue as CEO of Tommy Hilfiger, and will assume the added responsibility as CEO of PVH's international operations, as well as join the PVH board of directors.