Phillips-Van Heusen Corporation, the world's largest shirt company said today that it has enterd into a deal to acquire the apparel and retail fashion company Tommy Hilfiger Corporation for about $3 billion in a cash and stock deal.
Manhattan, New York-based Phillips-Van Heusen, which owns brands like Calvin Klein, Van Heusen and Arrow among others, is acquiring Tommy Hilfiger Corporation from private equity firm Apax Partners Worldwide LLP for $3 billion plus the assumption of $137 million in liabilities.
The deal, which confirms yesterday's report by the New York Times, (See: Phillips-Van Heusen in talks to acquire Tommy Hilfiger for $3 billion: report) includes $2.64 billion in cash and about $380 million in Phillips-Van Heusen common stock.
The merger will create one of the world's largest and most profitable apparel companies with a global business having combined revenues of approximately $4.6 billion.
Phillips-Van Heusen expects to realise approximately $40 million of annualised cost synergies in the merger.
While Tommy Hilfiger, founder of the eponymius company, no longer looks at running of the company, he remains a principal designer and a public face for the clothier.