Fashion News: Calvin Klein Parent Company To Buy Tommy Hilfiger Brand for $3B

LONDON (AFP) – The company behind Calvin Klein has bought fellow US fashion brand Tommy Hilfiger for 2.2 billion euros (3.0 billion dollars), Hilfiger's current owner said Monday.

Phillips-Van Heusen, one of the world's largest apparel companies, will open a "new chapter" in the the story of Hilfiger, said one executive.

"Funds advised by Apax Partners today announced a definitive agreement to sell Tommy Hilfiger Group ... to Phillips-Van Heusen Corporation for a total consideration of approximately 2.2 billion euros," Apax said.

Apax Partners, a leading British private equity group, bought Hilfiger in 2006 for 1.2 billion euros and has since boosted revenues, increased the brand's global presence and lowered its debts, Apax said.

"We've enjoyed working with them and now look forward to the next chapter in the Tommy Hilfiger story," Hilfiger chief executive Fred Gehring said.

Apax chief executive John Megrue said: "We are pleased that the company and brand are poised for continued growth."

Phillips-Van Heusen owns the Calvin Klein brand worldwide, the statement added. Its licensed brands include Kenneth Cole, DKNY, Sean John and Timberland.

-Editor's note: Interesting...Tommy Hilfiger is truly an iconic brand, one that has gone through many changes over the years. To infuse a small bit of the Calvin Klein look into that style of clothing should be very positive. We shall see though. Tommy Hilfiger has a worldwide audience. How will they accept the changes that no doubt are on the way? We shall see....

Tommy Hilfiger is known for its all-American casual and sports clothes, often featuring the preppy look of Ivy League American students, along with fragrances and accessories.

The company was struggling in its main US market when it was bought by Apax.

Apax partner Christian Stahl, who will join the Phillips-Van Heusen board after the sale, said that when they bought Hilfiger four years ago "the business was suffering in the US and had lost its clear positioning.

"We saw the strength of the international business and together with the management team developed a clear strategy for repositioning and restructuring the US business.

"We invested heavily for growth and were able to crystallise the inherent value in this iconic brand," he added.