PVH Corp buys out Tommy Hilfiger JV in China

PVH Corp, the apparel company that owns the Calvin Klein and Tommy Hilfiger brands, said today that it was acquiring the rest of the stake in TH Asia Ltd., the joint venture for China, that it did not already own.

TH Asia is the holding company for Tommy Hilfiger apparel in China. The deal price is about $172 million, out of which $100 million will be paid in cash. It is expected to close by the second quarter of 2016.

Other partners in the JV include funds advised by private equity firm Apax Partners, an affiliate of Silas Chou and members of Tommy Hilfiger management at the time of the acquisition in 2010. Such members include PVH vice chairman Fred Gehring, Tommy Hilfiger  CEO Daniel Grieder, and Tommy Hilfiger himself.

The Tommy Hilfiger business in China has doubled from approximately $70 million in revenue to a projected $140 million in revenue for 2015 with over 350 stores, of which 65 are directly operated. The JV had acquired Tommy Hilfiger’s China business from the former licensee in 2012.

“This transaction enables the Tommy Hilfiger business to directly operate its fastest growing market, while leveraging our well-established infrastructure in Asia, our regional leadership expertise and strong brand momentum across both our Tommy Hilfiger and Calvin Klein businesses in the region,” said Emanuel Chirico, chairman and chief executive officer, PVH Corp, in a statement.

“We plan to invest further in driving the expansion of the brand through new store openings (both company-operated and franchised stores) and improved productivity in existing stores,” said Daniel Grieder.

PVH Corp. is one of the world’s largest apparel companies and owns brands such as Van Heusen, Calvin Klein, Tommy Hilfiger, Izod, Arrow and Warner’s. Its licensed brands include Speedo, Kenneth Cole New York, Kenneth Cole Reaction, and Michael Kors.

Apax Partners, with over $38 billion under management, has previously invested in the fashion and consumer space in brands like Cole Hann and Karl Lagerfeld.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.