Tommy Hilfiger acquires Karl Lagerfeld trademarks and business

Tommy Hilfiger Corporation and Karl Lagerfeld have announced an agreement under which Tommy Hilfiger Corporation will acquire the trademarks of Karl Lagerfeld for an undisclosed cash amount. The transaction includes Lagerfeld Galleries and other Lagerfeld collections. In connection with the transaction, the parties have also entered into a long-term contract with Mr. Lagerfeld to continue to design and provide creative direction for Mr. Lagerfeld's brands. The acquisition does not include Mr. Lagerfeld's agreements with Chanel and Fendi.

Tommy Hilfiger Corporation and Mr. Lagerfeld plan to build Mr. Lagerfeld's brands on a worldwide basis. Their union is expected to draw upon the reputation of Mr. Lagerfeld as one of the world's most successful and visible fashion designers, and the experience and global infrastructure of Tommy Hilfiger Corporation. Mr. Lagerfeld's collections are currently in a start-up phase, and consist of a women's and a licensed men's collection. They are distributed within select European and Asian markets.

As part of the global expansion plan, Mr. Lagerfeld's brands will be developed within the U.S., particularly through the upscale department and specialty store channels. The goal is also to expand the distribution of Mr. Lagerfeld's women's and men's collections geographically, and pursue opportunities for growth across multiple categories.

Subject to customary closing conditions, the acquisition is expected to be completed within the next 30 days.

Karl Lagerfeld's business consists of the Lagerfeld Gallery, the women's luxury ready-to-wear collection, Lagerfeld, the licensed business for men's and women's and related accessories (eyewear is made by Régé et Associés, a subsidiary of L'Amy Group), as well as boutiques on the Left Bank in Paris and one in Monaco. In addition, Mr. Lagerfeld recently designed a one time collection for H&M under the 'Karl Lagerfeld for H&M' label. Mr. Lagerfeld also oversees a publishing venture, Editions 7L, and a bookshop, 7L. He is also an accomplished and well recognized photographer.