Brand owner takes control of Chinese joint venture and appoints dress licensee.
PVH, owner of the Tommy Hilfiger brand, has taken full ownership of the brand's joint venture in China, while at the same time finalizing a new licensing deal for Tommy Hilfiger dresses in the U.S. and Canada.
The new agreement for TH Asia will see PVH and funds advised by Apax Partners acquire the remaining 55 percent interest the joint venture that PVH did not already own for roughly $172 million. The deal is expected to close in the second quarter of this year.
Eventually taking full ownership of the joint venture was always part of the plan, since PVH and the funds advised by Apax Partners established the joint venture in connection with the Tommy Hilfiger acquisition in 2010.
Since 2012, the first year of operations after the joint venture acquired Tommy Hilfiger China from its former licensee, the Tommy Hilfiger business in China has doubled from nearly $70 million in revenue to a projected $140 million in revenue for 2015 with more than 350 stores.
“We are looking forward to executing a more fully integrated strategy for China that takes advantage of our current momentum in the region,” says Daniel Grieder, chief executive officer, Tommy Hilfiger. “This will allow us to further realize the growth opportunities that exist for the brand by offering consumers a greater breadth of Tommy Hilfiger product lines and a more elevated brand presentation. Building on our strong existing regional foundation, we plan to accelerate the growth of the Tommy Hilfiger business by increasing our brand marketing in China and capitalizing on our strong market positioning and price, value proposition. 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, while rapidly expanding our traditional and digital marketing initiatives to further reinforce the brand in this exciting market.”
Additionally, PVH has tapped G-III Apparel to develop a new Tommy Hilfiger dress collection that will complement existing Tommy Hilfiger women’s sportswear offerings. The spring 2016 collection will launch this month at select department stores including Macy’s, specialty stores and e-commerce partners in the U.S. and Canada.