American fashion brand Tommy Hilfiger Group has bought a 50 percent stake owned by Murjanis in Arvind Murjani Brands (AMB), a local joint venture with Arvind Group for an undisclosed amount.
PVH Corp, which acquired the Tommy Hilfiger Group from private equity giant Apax Partners last year, has also bought the licence for its trademarks that was with the Murjani Group in India.
Amarchand Mangaldas advised Tommy Hilfiger on the Indian aspects of the transaction with a team led by Partner Tushar Mavani and Senior Advisor Taxation Nanda Shah.
Wachtell, Lipton, Rosen & Katz, who have advised Tommy on a host of other transactions acted as International Legal advisors.
Mumbai-based firm D.M. Harish & Co. advised Murjani Group with a team led by Partners Anil Harish and Shobha Jagtiani.
Pryor Cashman acted as International legal advisor for Murjani Group with a team led by Partner John J. Crowe.
AMB is the apparel sub-licensee of Tommy Hilfiger brand in India since it was launched in the country. The 50:50 joint venture will continue between Arvind and PVH Corp, and will manage other sub-licensees of the brand in India.
According to VCCircle, the deal marks the direct presence of the Tommy Hilfiger Group in India, a strategy it has been following in other international markets for consolidating brand management. The Murjanis, led by the group chairman Mohan Murjani, partnered with Tommy Hilfiger to launch the brand and the company in the USA way back in 1985. Seven years ago, the Murjanis launched the brand in India.
Products under the Tommy Hilfiger brand are distributed through more than 80 free-standing stores and shop-in-shops across 30 cities, such as Delhi, Mumbai, Bangalore, Chandigarh and Hyderabad.
The existing Indian JV AMB had reportedly revenues of Rs. 120 crore and the deal value between Murjanis and PVH could top the Rs. 500 crore mark.
PVH Corp (formerly Phillips-Van Heusen Corp) owns brands such as Calvin Klein, Arrow, Tommy Hilfiger, IZOD, Bass and Van Heusen. It is the world’s largest shirts and neckwear company, and also holds the licence for global brands such as Timberland, DKNY and Nautica, among others.