Sunday March 12, 7:27 am Eastern Time
Hilfiger in talks on Calvin Klein stake - UK
paper
LONDON, March 12 (Reuters) - Tommy Hilfiger Inc (NYSE:TOM -
news), the clothes designer and marketer, is believed to be in talks to
buy part or all of Calvin Klein in a deal that could value the rival fashion house at $1 billion, a
British Sunday newspaper said.
Privately-owned Calvin Klein, Inc. said last year it was weighing courses of action to develop
its business and had not ruled out a merger or strategic alliance with another company.
The Sunday Telegraph reported that Hilfiger, known for its red, white and blue logo, had
approached Calvin Klein in the past month.
Hilfiger said in early February it would review its options including acquisitions, new business
opportunities, and stock repurchases.
Calvin Klein, one of America's best-known designer labels for everything from jeans to
underwear, said last October it brought on Lazard Freres & Co. LLC as financial advisers to
assist in its review of options.
Barry Schwartz, chairman and chief executive of Calvin Klein, said at the time that an increased
trend toward consolidation was redefining the industry.
Calvin Klein's brands include cK Calvin Klein and cK Calvin Klein Jeans. It designs and sells
products including apparel, watches, shoes, underwear, eyewear, and fragrance, as well as
products for the home.
Fans of the Hilfiger clothing label range from rappers, teens and baby boomers, but the company
warned in January that profits would be below expectations because price cuts and promotions
in department stores hit profit margins. |
