Phillips-Van Heusen to Acquire Clothing Company Tommy Hilfiger
March 20, 2010 by Jerry Reth · Leave a Comment
One of the largest brands of the last twenty years, Tommy Hilfiger will be purchased by the Phillips Van Heusen company. The sale is one of the largest ever in the fashion world, and insiders estimate that the deal will be in the range of 3 Billion dollars. This will position the Phillips-Van Heusen company as one of the largest clothing companies in the entire world. A move like this would be unprecedented to most in the fashion world, as most acquisitions are on a much smaller scale.
The deal will feature a number of different forms of payment. These forms of payment have been rumored to include a large amount of Euro’s in cash, a large amount of stock in the Phillips-Van Heusen company, as well as some money that will not be delivered in cash form. It is estimated that with the acquisition of Tommy Hilfiger, the Phillips-Van Heusen company will now be worth nearly 5 Billion dollars in total.
The company is based out of New York, and the company will take on nearly 100 million in liabilities. While this move has been rumored for a number of weeks across fashion blogs, it still comes as a surprise to many industry insiders. While deals like this are often rumored to be in the works, often times the deal will fall through at the last minute, or one side will not be able to reach an agreement with the other about the terms of the acquisition.
The spokes man for Tommy Hilfiger, Tommy Hilfiger himself, will also stay with the company after the acquisition. Many insiders have said that Hilfiger himself is part of the brand and that the deal wouldn’t have been done if Hilfiger did not agree to continue to play a valuable role in the company.
