American clothing company Phillips-Van Heusen (PHV) has signed a definitive agreement with Dickson Concepts (International) to buy back the license for the Tommy Hilfiger brand in Hong Kong, Macau, Taiwan, Singapore and Malaysia for an undisclosed value.
The agreement also covers certain related leases and retail assets for the brand and is expected to be completed in the second quarter of this year.
PHV said that the deal forms parts of its strategy to achieve direct control over its brands by acquiring licensed businesses.
The American company, which owns brands such as Calvin Klein, Van Heusen, Izod, Arrow, Warner’s, Olga and Geoffrey Beene, expects the deal to help it capitalise on the significant growth opportunity in the region.
PVH chairman and CEO Emanuel Chirico said: “This transaction demonstrates our commitment to making strategic investments to support the long term growth of PVH and our Tommy Hilfiger business, while leveraging our well-established infrastructure, our leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region.”
PVH acquired Tommy Hilfiger and certain affiliated companies from funds affiliated with Apax Partners for approximately $3bn in 2010.
PVH currently has operations in more than 40 countries and as over 36,000 associates working globally.
Tommy Hilfiger Global CEO Daniel Grieder said: “We are looking forward to executing a more fully integrated strategy for the Greater China market in coordination with our directly operated mainland China business.
“This transaction should allow us to further realise the growth opportunities that exist for the our brand by enabling the introduction of a wider range of product lines, and offering consumers a more immersive and elevated brand experience.
“Building on our strong existing regional foundation, we plan to accelerate the growth of our business and invest further in driving the expansion of the brand.”
Established in 1985, Tommy Hilfiger currently operates more than 1,800 retail stores across North America, Europe, Latin America and the Asia Pacific. It employs 15,000 associates globally to serve its customers.
The designer lifestyle brand offers men’s, women’s and kids’ sportswear, denim, accessories, and footwear under Tommy Hilfiger and Tommy Jeans, Hilfiger Collection, Tommy Hilfiger Tailored, and TommyXGigi brands.