Apax sells stake in Tommy Hilfiger China JV

PVH already has a 45% stake in TH Asia, a China-focused joint venture that was formed when Apax sold Tommy Hilfiger to PVH in 2010. The deal will see PVH acquire the remaining shares held by Apax, Silas Chou - another former owner of the global company - members of Tommy Hilfiger's management team as of 2010, and founder Tommy Hilfiger.

The purchase, of which about $100 million is cash, is expected to close in the second quarter of 2016, subject to regulatory approval, according to a statement.

PVH owns multiple globally recognized clothing brands such as Van Heusen, Calvin Klein, Izod and Arrow, as well as Tommy Hilfiger. The company also licenses additional brands such as Sean John, Chaps and Kenneth Cole New York.

"Apax has been privileged to partner with PVH to build the Tommy Hilfiger China joint venture and management team, leading to a significant expansion of the business," said Richad Zhang, head of Greater China at Apax. "As a result of these efforts and the work of the management team, Tommy Hilfiger has become one of the fastest growing and most profitable fashion brands in China. We thank PVH for its partnership and believe that PVH will take this iconic brand to its next height in China."

Apax sold Tommy Hilfiger to PVH for €2.2 billion (then $3.0 billion), almost double the $1.6 billion that the firm paid to take the company private in 2006. Since TH Asia acquired Tommy Hilfiger's former China licensee, the company's revenues in China have grown from about $70 million to a projected $140 million for 2015. TH Asia has over 350 stores in China, of which 65 are company-operated.

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• Topics
• Greater China
• Consumer
• Buyouts
• Trade sale
• China
• Apax Partners
• Consumer
• buyout
• Trade sale
• Exit