Fashion Wire Daily - Paris - Phillips-Van Heusen, the corporation that owns Calvin Klein, has agreed to buy the Tommy Hilfiger brand from Apax Partners, in a deal that will see the private equity fund almost double its original investment.

Under the terms of the deal, Phillips-Van Heusen (PVH) will pay Apax "a total consideration" of approximately 2.2 billion euros, or $3 billion, according to a joint press release.

The acquisition price will be composed of 1.924 billion euros, or $2.6 billion, in cash and 276 million euros, or $380 million, in Phillips-Van Heusen common stock. In addition, PVH will assume 100 million euros, or $138 million, of liabilities.

The deal represents a remarkable capital gain for the Apax funds, which first acquired Calvin in May 2006, in a public-to-private transaction for 1.2 billion euros, or $1.6 billion.

Since then, Tommy Hilfiger's new management team undertook a strategy of boosting the label's global presence and raising its brand positioning in the market. Hilfiger bought back its Japanese licensee, and began an exclusive department store distribution agreement with Macy's in the U.S.

"Apax Partners shared our belief in the underlying strength of this business at a very early stage. Their support and backing over the past four years as we gained momentum globally while rebuilding the business in North America, has been invaluable... We've enjoyed working with them and now look forward to the next chapter in the Tommy Hilfiger story," said Fred Gehring, CEO of Tommy Hilfiger Group.

Gehring and his management team will stay in charge under the new owners.

Apax Partners is a leading private equity investment groups, operating across the United States, Europe and Asia with 30 years of investing experience. Funds under the advice and management of Apax Partners globally total approximately $40 billion.