Phillips Van-Heusen Buying Tommy Hilfiger
Mar 15, 2010 Company News, Mergers & Acquisition, Stocks On The Move
Apparel company Phillips Van-Heusen (PVH), which is well-known for its namesake shirts, as well as several other well-known brands, including Calvin Klein, Izod, Bass, and Nautica among others, today announced that it is purchasing Tommy Hilfiger from Apax Partners for approximately $3 billion and the assumption of about $136 million in liabilities.
According to the company, “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.”
With the purchase, Phillips Van-Heusen expects to realize about $40 million in annualized cost synergies. The company also expects that the deal will be immediately accretive to earnings before one time costs and accounting charges, with an earnings accretion of $0.20 to $0.25 per share on a non-GAAP basis in the 2010 fiscal year ending January 30, 2011 and earnings accretion of $0.75 to $1.00 per share in the 2011 fiscal year ending January 29, 2012.
The deal was very well-received by Wall Street, with traders sending Phillips Van-Heusen shares up $4.66 to $52.40, for a 9.76% gain on the day.
Apparel company Phillips Van-Heusen (PVH), which is well-known for its namesake shirts, as well as several other well-known brands, including Calvin Klein, Izod, Bass, and Nautica among others, today announced that it is purchasing Tommy Hilfiger from Apax Partners for approximately $3 billion and the assumption of about $136 million in liabilities.
According to the company, “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.”
With the purchase, Phillips Van-Heusen expects to realize about $40 million in annualized cost synergies. The company also expects that the deal will be immediately accretive to earnings before one time costs and accounting charges, with an earnings accretion of $0.20 to $0.25 per share on a non-GAAP basis in the 2010 fiscal year ending January 30, 2011 and earnings accretion of $0.75 to $1.00 per share in the 2011 fiscal year ending January 29, 2012.
The deal was very well-received by Wall Street, with traders sending Phillips Van-Heusen shares up $4.66 to $52.40, for a 9.76% gain on the day.
