|
Magazines Archives - 2010 May
Philips-Van Heusen Corporation will buy over Tommy Hilfiger for US$3 billion.
Story 3 - News 
MULTI-BRAND apparel group, Phillips- Van Heusen Corporation (PVH), is buying over premium lifestyle brand company, Tommy Hilfiger BV, from its owner, Apax Partners LP, for 2.2 billion (US$3 billion).
According to the company, PVH partly funded the deal from sales of about 5.8 million shares of PVH common stock at US$66.50 per share, to make a cash payment of 1.9 billion, and 276 million in stock, forming one of the worlds largest and most profitable apparel companies
with combined revenue of approximately US$4.6 billion, PVH said in a statement.
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.
Tommy Hilfigers CEO, Fred Gehring, added: The scale of the combined company in the US will deliver obvious benefits for both companies, while Tommy Hilfigers significant international presence and infrastructure offers an opportunity for PVH to introduce a number of its brands into the international market.
Accordingly, the brands designer, Tommy Hilfiger, will remain as principal designer and visionary for the brand, while Gehring will take on the position of CEO of PVHs international operations, while maintaining his post as CEO of Tommy Hilfiger. Gehring will join the board of directors at PVH, along with Christian Stahl, a partner at Apax Partners.
Meanwhile, the Tommy Hilfiger group revealed in March that it will take over direct control of its wholesale and retail business in China from its licensee, Dickson Concepts Limited, from March 1 next year.
This acquisition is in line with our strategy to consolidate brand management and approach the market in the most coordinated manner possible, Gehring added. Commending its licensees efforts to establish the brand in the region, he explained that by assuming direct control of the brands operations in China, we will now be in a better position to support the development and expansion of the business in this important growth market. ra
To view other stories, get a copy of Retail Asia. To subscribe, please download the subscription form from http://www.retailasiaonline.com/subscription.html
|
