Phillips-Van Heusen Buying Tommy Hilfiger for $3 Billion

NEW YORK (Reuters) – Phillips-Van Heusen (PVH.N) is close to a deal to buy U.S. fashion brand Tommy Hilfiger Corp for about 2.2 billion euros ($3 billion), The New York Times reported on Sunday, citing people briefed on the matter.

[UPDATE: The deal has been announced]

The cash and stock deal could be announced as soon as Monday morning, the Times reported. But the newspaper cautioned that talks are still ongoing and a deal may not be reached.

Tommy Hilfiger Corp is currently owned by private equity firm Apax Partners.

The newspaper said that under the proposed deal, most of the offer will be in cash although some stock will be included. Apax will own 10 to 15 percent of the clothing company, it reported.

Spokesmen for Phillips-Van Heusen and Apax did not immediately return calls seeking comment.

Tommy Hilfiger Chief Executive Officer Fred Gehring told Reuters in September that an IPO remained the most likely exit strategy for Apax, but that it could be two years away.

In 2008, plans to float the company on the Amsterdam exchange were shelved due to volatile market conditions.