PVH Buys Tommy Hilfiger for $3 Billion - NBC New York
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PVH Buys Tommy Hilfiger for $3 Billion



    The rumors of a possible Tommy Hilfiger sale were confirmed this morning news that the Phillips-Van Heusen Corporation (owner of Calvin Klein) would purchase the preppy empire for $3 billion.

    In a statement, the chief executive of PVH, Emanuel Chirico, said, "Tommy Hilfiger fits all of our acquisition criteria: a strong brand, superior management, highly profitable, immediately accretive to earnings, and focused on international growth."

    It's true that, according to The New York Times, Tommy Hilfiger has come back in a major way since 2006, when the company was sold to Apax and European management. Hilfiger has returned to a more laid-back Americana aesthetic ("Ralph Lauren light" if you will), getting an exclusive deal with Macy's and attracting the likes of the Gossip Girl cast to his fashion shows. The fact that PVH -- a clothing empire that also holds licensing agreements with Kenneth Cole and also owns similarly preppy brands like Izod -- has paid such a hefty sum for the brand says a lot about is perceived growth potential.