PVH takes full control of its Tommy Hilfiger joint venture in China
PVH Corp. now has total control of Tommy Hilfiger in China. The US group, proprietor of Tommy Hilfiger and Calvin Klein, has recently acquired the share in its Chinese joint venture company it didn't yet own. In 2011, the joint-venture company TH Asia, consisting of PVH, of a company belonging to Hong Kong tycoon Silas Chou and other investors represented by Apax Partners, acquired the licence for China from the brand's former partner.
The formula made it possible for Tommy Hilfiger to generate sales for $140 million in 2015, compared to $70 million in 2012. PVH has now acquired the 55% share it did not control, for the reported sum of $172 million.
Emanuel Chirico, PVH's CEO, said that "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, with both Tommy Hilfiger and Calvin Klein in the region."
Tommy Hilfiger operates 350 stores in the region, 65 of them directly. The new organisation will allow the brand to offer a wider range to its Chinese customers. "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," stated Daniel Grieder, Tommy Hilfiger's CEO.
The transaction is expected to be completed during the second quarter of 2016.
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