After months of will they, won't they, speculation it was confirmed yesterday that the Phillips-Van Heusen Corporation, which owns the likes of Calvin Klein, Kenneth Cole and Izod among others, has added classic American label Tommy Hilfiger to its portfolio after completing a whopping $3b (£1.9b) deal.
The "industry transforming" purchase has made the Phillips-Van Heusen group one of the world's largest clothing companies with an estimated revenue of £3b, according to experts.
The acquisition will see Tommy Hilfiger, founder of the label and head designer, remain at the helm. He said of the deal, "I look forward to remaining actively involved in the business. This is the next phase in the global evolution and expansion of the Tommy Hilfiger brand."
Tommy Hilfiger was bought by the private equity firm Apax partners in 2006 for £1b. The merger is expected to boost the American brand's profile internationally, particularly in Europe and Asia.
In other acquisition news, it was announced yesterday that French Connection has sold the Nicole Farhi label after it posted annual losses of almost £9m. French Connection's Stephen Marks, whose ex-wife Nicole Farhi is founder and head designer of the brand, sold the business to the Los Angeles-based private equity firm OpenGate Capital for a reported £5m.
The deal brings to an end a business relationship between the pair that has lasted for more than 25 years. When they were a couple, Nicole's French roots inspired the name of the high street store. Farhi will remain creative director at the eponymous label under the new owners.
Picture: Tommy Hilfiger autumn/winter 2010.
tommyhilfiger.co.uk
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