Tommy Hilfiger Sports $3B Price Tag

Phillips-Van Heusen says it will buy privately-held Tommy Hilfiger in a cash-and-stock deal valued at about $3 billion, creating one of the world's biggest clothing companies.

The deal announced Monday includes approximately €1.9 billion in cash ($2.6 billion) and €276 million ($379.9 million) in Phillips-Van Heusen stock.

The New York clothing retailer will also assume €100 million ($137.6 million) in liabilities.

The combined company's revenue will total about $4.6 billion.

Tommy Hilfiger was acquired in May 2006 for about €1.2 billion by a group led by the buyout firm Apax Partners. The apparel and retail company, which grew from the debut of Hilfiger's menswear line in 1985, operates more than 900 stores around the world, and recently opened its global flasgship store in New York City.

The sale to Phillips-Van Heusen is expected to close in Phillips-Van Heusen's second quarter.

Phillips-Van Heusen currently owns Calvin Klein, Izod, Van Heusen, Arrow and Bass, and licenses several other brands, including DKNY, Chaps, Geoffrey Beene, Nautica and Timberland.