Phillips-Van Heusen in talks to acquire Tommy Hilfiger for $3 billion: report

Phillips-Van Heusen, the world's largest shirt company is planning to acquire the apparel and retail fashion company Tommy Hilfiger Corporation for about $3 billion, according to media reports.

Manhattan, New York-based Phillips-Van Heusen, which owns brands like Calvin Klein, Van Heusen and Arrow among others, is close to acquiring Tommy Hilfiger Corporation from private equity firm Apax Partners Worldwide LLP for as much as $3 billion in cash and stock, said the New York Times yesterday.

A sale of Tommy Hilfiger would be a lucrative exit for Apax Partners since it had paid $1.6 billion in cash in 2006 to acquire the fashion clothier.

Apax has twice sought an initial public offering for Tommy Hilfiger, whose chief executive, Fred Gehring had told Reuters in September that an IPO was the most likely next step for the company.

Under the deal, set to be announced in a few days, Apax will retain about 10 to 15 per cent ownership and Phillips-Van Heusen is expected to take on a significant amount of debt as part of the transaction.

Phillips-Van Heusen management, led by Emanuel Chirico, will remain in New York, and Tommy Hilfiger's will remain in Amsterdam.