Daily Front Row

2010 March 15

When Tommy Met Calvin

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Tommy Hilfiger
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(NEW YORK) Rumors of the acquisition have been swirling for weeks, but this morning, Phillips-Van Heusen Corporation, the owner of Calvin Klein, Inc, confirmed that it has acquired Tommy Hilfiger. The companies revealed in a joint statement that PVH paid 2.2 billion euros ($3 billion) for Tommy, plus 100 million euros ($137 million) in liabilities, from former owner Apax Partners L.P.

Tommy Hilfiger will stay on in his position of head designer for the brand, though chief executive Fred Gehring will take on more responsibilities as he joins the PVH board of directors and becomes chief executive of PVH’s international operations. The merger creates a veritable apparel powerhouse of Phillips-Van Heusen, which in addition to Calvin owns Izod, Bass, and licenses for brands like DKNY, Nautica, Kenneth Cole, Geoffrey Beene, Michael Michael Kors, and Sean John.

"This is the next phase in the global evolution and expansion of the Tommy Hilfiger brand,” said Hilfiger in a statement. “I am confident that Manny Chirico [chairman and CEO of PVH] and the PVH organization will provide Tommy Hilfiger with the support and investment to allow my great partners in the Tommy Hilfiger organization to do what is necessary to take our brand to new heights. I look forward to remaining actively involved in the business and believe that PVH is the ideal partner to help us achieve our goals."
EMILY GYBEN