Apax Partners nears deal to buy Tommy Hilfiger for $1.5bn

The private-equity firm Apax Partners is expected to bag Tommy Hilfiger within days after entering exclusive talks with the fashion group.

The Hong Kong-based group, which designs and markets "all-American preppy classics" hoisted a for-sale sign in August after struggling with its US wholesale business.

Its New York-listed shares slipped 2 per cent to $16 last night after the news broke that Apax is near to a deal to buy the company for more than $1.5bn, or $16.50 to $17 a share.

Bids for Tommy Hilfiger were due in at the end of last week, and the private-equity firms Sun Capital and Oak Hill Partners and Hong Kong's Li & Fung were also understood to have been interested.

Analysts believe that Tommy Hilfiger, founded by the eponymous designer in the 1980s, has scope for expansion in Europe, despite struggling with poor sales in the US wholesale division, which accounts for about 30 per cent of its revenues. The company's latest results revealed a net loss of $2.7m on sales of $320m during the three months to the end of June.

Industry commentators believe that Apax could team up with Philips-Van Heusen, the textile manufacturer which holds licences for designer brands such as DKNY and Kenneth Cole, to buy Tommy Hilfiger. The private-equity firm has had a stake in PVH since it helped the group finance its purchase of the fashion group Calvin Klein. Apax Partners and Tommy Hilfiger declined to comment last night.