Phillips-Van Heusen to buy Hilfiger for $3 billion

NEW YORK (Reuters) - Apparel company Phillips-Van Heusen Corp (PVH.N) said it will buy fashion brand Tommy Hilfiger in a cash and stock deal for about $3 billion in a bid to boost its presence in markets like Europe and Asia.

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

Phillips-Van Heusen, also owner of the Calvin Klein label, expects the deal to boost earnings by 20 cents to 25 cents a share, excluding items, in the current fiscal year. It also sees a profit boost of 75 cents a share to $1.00 a share in the next fiscal year ending January 29, 2012.

"Tommy Hilfiger fits all of our acquisition criteria: a strong brand, superior management, highly profitable, immediately accretive to earnings, and focused on international growth," Phillips-Van Heusen CEO Emanuel Chirico said.

Phillips-Van Heusen sees annual cost savings of $40 million from the deal and expects to close it in the second quarter.

After the deal, Tommy Hilfiger will remain in his role as principal designer and visionary for the namesake brand and Fred Gehring will continue as CEO of Tommy Hilfiger. Gehring will also take on the role as CEO of PVH's international operations, and join the PVH board.

(Reporting by Dhanya Skariachan; Editing by Derek Caney, Dave Zimmerman)