The two firms will become independent publicly traded companies in 2015. The move follows pressure from investor Carl Icahn to spin off the payments ...
Phillips-Van Heusen today announced it would acquire Tommy Hilfiger in a deal valued at $3.0 billion. Tommy Hilfiger, which relaunched its e-commerce site on an ATG platform in 2008, also launched a mobile app for iPhone users in September.
Phillips-Van Heusen Corp., which already operates multichannel and e-commerce brands such as Calvin Klein, Izod, Arrow and Kenneth Cole, is adding another famous designer label to its portfolio: The Tommy Hilfiger Group of Cos.
Phillips-Van Heusen today announced it would acquire Tommy Hilfiger in a deal valued at $3.0 billion. Phillips-Van Heusen will pay $2.62 billion in cash for Tommy Hilfiger and issue up to $380 million in Phillips common stock. Phillips-Van Heusen plans an initial public offering at a later date to fund approximately $200 million of the stock portion of the deal.
The transaction to acquire Tommy Hilfiger is expected to be complete by June. Tommy Hilfiger, which relaunched its e-commerce site on Art Technology Group Inc.`s ATG On-Demand software-as-a-service platform in 2008, also introduced a mobile app for iPhone users in September.
Tommy Hilfiger doesn`t break out web sales and as a private company doesn`t usually break out total revenue. But for the fiscal year ending March 31, Phillips-Van Heusen reports that Tommy Hilfiger will generate:
- Total revenue of about $2.25 billion.
- Earnings before interest and taxes of about $280 million.
- Retail sales account for about 52%-$1.31 billion-of total revenue.
"This is a unique opportunity to bring together two premier companies, each with iconic brands, which will deliver enhanced opportunities for our stockholders, business partners, customers and employees as we leverage a combined global platform in the years ahead," says Phillips-Van Heusen CEO Emanuel Chirico."During almost four years as a private company, Tommy Hilfiger has continued to gain momentum in Europe and Asia, while successfully rebuilding its business in North America, producing impressive overall performance."
Phillips-Van Heusen has yet to report its final year-end financials, but in a February earnings release the company said it expects total revenue for the fourth quarter to be about $612 million, an increase of 9.0% from fourth quarter revenue of $561 million in 2008. Total revenue for 2009 is estimated to be flat at about $2.49 billion. Kenneth Cole is No. 365 in the Internet Retailer Top 500 Guide.