Phillips, Apax and apparel supplier, 2003-
Van Heusen Corp. acquired Calvin Klein, PVH said they are in preliminary negotiations with Apax on how to work together to reach a Tommy agreement.
New York: Months after searching for a suitor, Tommy Hilfiger embraced the same private equity company that helped acquire American design icon Calvin Klein two years ago on Friday.
Tommy Hilfiger said he accepted $1.
6 billion cash acquisition bid for Apax Partners.
Phillips, Apax and apparel supplier, 2003-
Van Heusen Corp. acquired Calvin Klein, PVH said they are in preliminary negotiations with Apax on how to work together to reach a Tommy agreement.
John Megrue of Apax co-said: \"It\'s an incredible brand, a great American iconic brand and we think we can continue to grow significantly worldwide
Chief Executive Officer.
The price of the deal is around $16.
80 per share, a 5% premium based on Thursday\'s closing price.
Apax has all Philips-
Van Heusen\'s Series B shares can be converted into 23% of the company\'s shares. Philips-
According to sources involved in the deal, Van Heusen has been exploring a Tommy Hilfiger license agreement with Apax.
Tommy Hilfiger, based in Hong Kong and New York, has struggled to maintain relatively smooth sales over the past five years.
To improve performance, it adjusts the design direction and in its 90 s, it gives up the classic American pedigree and embraces the funky bright colors and loose clothes
Hop style, in recent years, because its core customers have lost interest in loose products, it has returned to its roots. jeans fad.
The company also said on Friday that second-quarter profits had ended.
30, down 9 from before
During the year, sales fell by 6. 1%.
On June, the company reached an agreement with US prosecutors to investigate whether payments between its subsidiaries artificially reduced taxes.
On August, sources said the company was preparing for the sale.
The stock rose 49% compared to 6.
The Dow Jones apparel and accessories index rose 5%. Phillips-
Shares in Van Heusen rose 3. 1% to $32. 71 on the NYSE.
The eponymous and founder of Tommy Hilfiger has agreed to Apax to enter into a new employment agreement in which he will continue to serve as chief designer and chairman of the strategy and design committee.
Fred Gehring, chief executive of Tommy Hilfiger Europe, will replace David Dyer, who is leaving office, as CEO.
The sale is expected to end in spring and subject to shareholder approval.
JPMorgan Chase has consulted Tommy Hilfiger on the deal.