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PVH completes Tommy Hilfiger deal

Phillips-Van Heusen Corporation has completed its deal to acquire Tommy Hilfiger from UK private equity group Apax Partners.

Phillips-Van Heusen (PVH), which owns the Calvin Klein brand agreed to buy premium brand Tommy Hilfiger in March for €2.2bn (£2bn).

Fred Gehring will continue as chief executive of Tommy Hilfiger and has also become chief executive of the combined company’s international operations.

He said: “This is an extraordinary day in the evolution of the Tommy Hilfiger business. We look forward to continue building on the significant global momentum we have achieved for the Tommy Hilfiger brand over the last three years as a private company and applying our unique global infrastructure to enable PVH to expand the presence of its heritage brands - Van Heusen, Izod and Arrow - in the international marketplace.”

PVH chairman and chief executive Emanuel Chirico said: “We are extremely pleased to announce the completion of the Tommy Hilfiger transaction. The combination brings together two premier companies, each with iconic brands and strong growth prospects, which we believe will create significant value for our stockholders and deliver enhanced opportunities for our business partners, customers and employees as we leverage a combined global platform in the years ahead.”

PVH has also completed several previously announced financing agreements made to fund the purchase and provide ongoing funding for PVH.

These include issuance of PVH public shares worth approximately $382m (£255.7m); issuance of over eight million additional PVH shares to the shareholders of Tommy Hilfiger and issuance of a further $200m (£133.7m) worth of shares to other investors.

PVH has also closed its senior secured credit facility, which consists of loans in US dollars totalling $1.4bn (£937m) and loans in euros totalling
€400m (£340m).

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