DALLAS, Dec 15, 2004/ FW/ --- It’s 2004’s biggest surprise and ‘ole St. Nick has a bundle for the fashion flock. Tommy Hilfiger Corporation announced last Monday that it would acquire the trademarks of Karl Lagerfeld that will include Lagerfeld Galleries and other Lagerfeld collections.

According to the same announcement, the parties have also entered a long-term contract with Mr. Lagerfeld to continue to design and provide creative direction for Mr. Lagerfeld’s brands. The acquisition does not include Mr. Lagerfeld's agreements with Chanel and Fendi.

"In choosing a partner to expand my business, I was looking for a company that has built a business on a global basis, and possesses the infrastructure and resources to make our vision for the Lagerfeld brand become a reality. I have been impressed with David, Tommy and their team, and I look forward to working together on exciting new initiatives," commented Mr. Lagerfeld in a statement.

The deal is expected to be completed within the next 30 days. The amount of the transaction was not disclosed.

Once the acquisition is completed, Tommy Hilfiger Corporation and Mr. Lagerfeld plan to build Mr. Lagerfeld’s brands on a worldwide basis.

Their union is expected to draw upon the reputation of Mr. Lagerfeld as one of the world's most successful and visible fashion designers, and the experience and global infrastructure of Tommy Hilfiger Corporation. Mr. 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, Mr. Lagerfeld's 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 Mr. Lagerfeld's women's and men's collections geographically, and pursue opportunities for growth across multiple categories.