Tommy Hilfiger Corporation and Karl Lagerfeld 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 Karl Lagerfeld will continue to design and provide creative direction for Lagerfeld's brands. The acquisition does not include Karl Lagerfeld's agreements with Chanel and Fendi.

Tommy Hilfiger Corporation and Karl Lagerfeld plan to build Lagerfeld's brands on a worldwide basis. Their union is expected to draw upon the reputation of Karl Lagerfeld as one of the world's most successful and visible fashion designers, and the experience and global infrastructure of Tommy Hilfiger Corporation.

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, Lagerfeld 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 Lagerfeld women's and men's collections geographically, and pursue opportunities for growth across multiple categories.

David Dyer, President and Chief Executive Officer of Tommy Hilfiger Corporation, stated, "The Karl Lagerfeld name has tremendous cachet. We believe this opportunity will provide an exciting, new growth platform within the upscale apparel segment and complement our existing business."

Tommy Hilfiger, Honorary Chairman and Principal Designer, added, "Karl is a true inspiration. Designing for the world's most prestigious collections, he has continuously set the benchmark for style, creativity and sophistication. Karl will continue to have autonomy in executing his vision on a global scale, while benefiting from a supportive partner. We look forward to the many opportunities ahead."

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, as well as boutiques on the Left Bank in Paris and one in Monaco.

Karl Lagerfeld is one of the most accomplished fashion designers in the world, and his work includes long-standing collaborations with Fendi and Chanel. In addition, Karl Lagerfeld recently designed a one time collection for H&M under the "Karl Lagerfeld for H&M" label. Karl Lagerfeld also oversees a publishing venture, Editions 7L, and a bookshop, 7L. He is also an accomplished and well recognized photographer. 

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