Apax Partners has entered into an agreement to sell Tommy Hilfiger to Phillips-Van Heusen (NYSE: PVH) for EUR2.2 billion ($3 billion) plus the assumption of EUR100 million ($136 million) in liabilities. Philips-Van Heusen is paying EUR1.92 billion ($2.6 billion) in cash and EUR276 million ($375 million) in stock. The stock component of the transaction will make Apax the largest shareholder of Philips-Van Heusen following the deal. Apax took Tommy Hilfiger private in a $1.6 billion deal in 2006 with $450 million in equity. The sale will earn Apax approximately 4.5x its original investment.
An industry breakdown of the 68 completed private equity exits so far in 2010 shows that PE firms are finding the most exit opportunities in services-related companies, according to the PitchBook Platform. Commercial services companies are leading all industries with 9 exits, almost half of which are from BPO Services companies. The Consumer Services industry has been the biggest by dollar amount with $686 million in total, led by The Riverside Company's sale of ATI Career Training Center to BC Partners for $291 million. Retail company exits have also been strong. Including Tommy Hilfiger, the total is already at 5.