Phillips-VH finds $3bn Hilfiger deal up its sleeve

CALVIN Klein owner Phillips-Van Heusen is to buy fellow American fashion label Tommy Hilfiger in a cash-and-stock deal worth $3 billion (£2bn) in a bid to boost its presence in markets such as Europe and Asia.

It will be the second change of ownership in four years for Tommy Hilfiger: it was bought by its current owner, British private equity group Apax Partners, in 2006 for $1.6bn at a troubled time for the brand.

Apax fought off stiff competition – from firms including Phillips-Van Heusen – to secure the deal, and said yesterday that Hilfiger was "back to its old strengths" after an overhaul.

Apax partner Christian Stahl, who will join the Phillips-Van Heusen board following the sale, said: "In 2006, the business was suffering in the US and had lost its clear positioning. We developed a clear strategy for repositioning and restructuring the US business. We invested heavily for growth and were able to crystallise the inherent value in this iconic brand."

During the period, store numbers almost doubled to 1,002.

Phillips-Van Heusen, which bought Calvin Klein in 2003, already has a relationship with Tommy Hilfiger through a licensing agreement.