Holy cow!!

This is a tad shocking.

PVH acquires Tommy Hilfiger for $3bn


By Alan Rappeport in New York
Published: March 15 2010 12:34
Last updated: March 15 2010 12:34
Phillips Van Heusen, the apparel company, agreed on Monday to acquire Tommy Hilfiger in a $3bn deal that will combine two of the world’s biggest clothing retailers.
Tommy Hilfiger was acquired in 2005 by Apax, a private equity group, for $1.6bn. Through the cash and stock deal, PVH will also assume about $137m in liabilities
"This is a unique opportunity to bring together two premier companies, each with iconic brands,” Emanuel Chirico, chief executive, said in a PVH statement.
Talks between Apax and PVH intensified during the past few weeks. Apax, which took Tommy Hilfiger private, originally planned to float it in 2008 but was deterred by turmoil in the stock market.

The Tommy Hilfiger brand became prominent in the 1990s as it gained popularity with rap musicians. After falling out of style in the past decade it has enjoyed a resurgence in recent years.
Mr Hilfiger will remain as “principal designer and visionary” for the brand and called PVH “the ideal partner to help us achieve our goals”.
Monday’s acquisition represents one of the largest in the retail sector since the recession, which diminished consumers’ appetites for discretionary goods.
PVH owns a broad array of brands including Calvin Klein, Izod, DKNY, Chaps, Arrow and Geoffrey Beene. Tommy Hilfiger has 1,000 stores globally and is projected to have revenues of $2.25bn this year.
“Tommy Hilfiger fits all of our acquisition criteria: a strong brand, superior management, highly profitable, immediately accretive to earnings, and focused on international growth,” said Mr Chirico, who said he expected to reduce debt quickly. “We also believe that our cultures are highly compatible.”