Simpson Thacher represents Apax Partners and Tommy Hilfiger Group in the sale of Tommy Hilfiger to Phillips-Van Heusen Group (“PVH”) for €2.2 billion (approximately $3.0 billion) plus the assumption of €100 million in liabilities. Tommy Hilfiger B.V. is controlled by funds affiliated with Apax Partners L.P. The consideration includes €1.924 billion in cash and €276 million in PVH common stock. The joint press release notes that “the combination will create one of the world’s largest and most profitable apparel companies; a global business with combined revenue of approximately $4.6 billion.”
The closing of the transaction is subject to receipt of financing and other customary conditions, including regulatory approvals. The transaction does not require a PVH stockholder vote and is expected to close during PVH’s fiscal 2010 second quarter.
Apax is one of the world’s leading private equity investment groups. Tommy Hilfiger is a designer apparel group focusing on designing and marketing high-quality menswear, womenswear, children’s apparel and denim collections. Phillips Van-Heusen is one of the world’s largest apparel companies that markets a variety of goods under its own brands: Van Heusen, Calvin Klein, IZOD, ARROW, Bass and G.H. Bass & Co. and its licensed brands, including Tommy Hilfiger, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, unlisted, A Kenneth Cole Production, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, DKNY and Timberland.
The Simpson Thacher team includes: Robert Spatt, Ryerson Symons, Doug Bacon, Phil Buffa, Valentina Casella, Ravi Agarwal (M&A); Brian Robbins, Jamin Koslowe, and Eric Sarabia (Executive Compensation and Employee Benefits); Gary Mandel and Sean Austin (Tax); Brian Steinhardt (Financing); Ken Wallach (Capital Markets); David Vann, Michael Naughton and Andrew Dempster (Antitrust) and Lori Lesser and Marcela Robledo (Intellectual Property).