The rumors from last week were true.
Phillips-Van Heusen Corp. will buy Tommy Hilfiger BV from Apax Partners for $3 billion, plus the "assumptions of $138 million in liabilities", creating a combined revenue of about $4.6 billion.
Many fashion industry insiders say that this deal is industry-transforming, even with PVH taking on all of the Hilfiger brand's debt. PVH plans on repaying that debt with money from expanding the brand on international endeavors. Apax Partners will receive $2.65 billion in cash and $380 million in PVH common stock, which will end up owning 13 percent of PVH.
“From a strategic point of view, the Tommy business fits all our criteria for an acquisition. It’s a powerful global brand with a very strong international operating platform,” Emanuel Chirico, PVH’s chairman and chief executive officer, told WWD.
Sources, Photo: WWD.com
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