NEW YORK — Inking one of the top 10 textile merger deals on record, Phillips-Van Heusen Corp., owner of Calvin Klein, said it agreed to buy Tommy Hilfiger B.V. for about $3 billion in cash and stock to expand the label and its own portfolio, from Izod to Arrow, internationally.
The combination will about double the size of Phillips-Van Heusen to $4.6 billion from about $2.35 billion, New York-based Phillips-Van Heusen said. It also will make Tommy Hilfiger the company’s biggest brand, generating about 50 percent of both its sales and profit. That overtakes Calvin Klein, which represents about 18 percent of the company’s sales and 45 percent of its profit, said chief executive Emanuel Chirico in an interview.
“It brings together two highly complementary brands,” he said.
It also will increase the company’s international exposure, from about 10 percent of total sales to nearly two-fifths, because Tommy Hilfiger generates about two-thirds of its $2.25 billion in expected revenue outside the U.S. MarketWatch
