PVH Corp. Completes Acquisition of Its Tommy Hilfiger China Joint Venture
PVH announced Wednesday that it has completed its acquisition of the 55% interest in TH Asia Ltd., its joint venture for Tommy Hilfiger in China. The acquisition was first announced in February 2016.
The acquisition is expected to add approximately $100 million of revenue and be slightly accretive to 2016 earnings per share on a non-GAAP basis.
Emanuel Chirico, Chairman and Chief Executive Officer, PVH Corp., commented: “This transaction has been envisioned since PVH and the funds advised by Apax Partners established the Tommy Hilfiger China joint venture in connection with the Tommy Hilfiger acquisition in 2010. With the closing of this transaction, our Tommy Hilfiger business can now operate directly its fastest growing market.”
The Tommy Hilfiger business did very well for PVH both in North America and internationally. The brand revenue increased 5% in the fourth quarter of 2015 and 4% in the full year. The acquisition comes at a favorable time for PVH to capitalize on the international market.
Daniel Grieder, Tommy Hilfiger's CEO, stated in February, "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.”
Tommy Hilfiger operates 350 stores in the region, with 65 of them being directly owned.
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