Hilfiger's Christmas Purchase

This morning fashion mogul Tommy Hilfiger announced that the company has acquired the trademarks of Karl Lagerfeld for an undisclosed amount. This deal includes the Lagerfeld Gallery, his women's luxury ready-to-wear collection, and other Lagerfeld collections, including boutiques in Monaco and Paris. Hilfiger will allow the Lagerfeld brand to grow internationally, with Karl Lagerfeld as creative director. The transaction will not affect his running contracts with Chanel or Fendi.

Lagerfeld told reporters that he was looking for a partner that had already built a global business, which had the infrastructure and resources in place to "make our vision of the Lagerfeld brand become a reality." He was excited about the deal and said: "I have been impressed with Tommy and his team and I look forward to working together on new initiatives."

President and chief executive of the Tommy Hilfiger Corporation, David Dyer, said the acquisition was an important move in the company's bid to build a multi-brand portfolio of businesses. Furthermore, he told reporters, the Lagerfeld name has enormous cachet and he believed that although the company was still in its start-up phase, it would contribute to increased revenues in the future.

Hilfiger responded by calling Lagerfeld a true inspiration. "Designing for the world's most prestigious collections, he has continuously set the benchmark of style, creativity and sophistication," said Hilfiger. He emphasised that Lagerfeld will continue to wield the creative power over his new brand, which is presently in its start-up phase. The transaction will be completed within the next thirty days, pending closing conditions.