Fashion label Tommy Hilfiger is understood to be considering a European flotation in a deal that could see the company valued at up to US$3 billion (£1.47 billion).

Private equity firm Apax Partners, which owns about 80 per cent of Tommy Hilfiger, is understood to have appointed investment banks Credit Suisse and Citi to examine a listing of the business.

Designer Tommy Hilfiger produced his first line of men’s clothing in 1984 and took home about£32 million from the deal with Apax. It was bought by Apax in 2005 for US$1.6 billion (£785 million).

It is understood Tommy Hilfiger is considering listing on the European markets because the brand is focusing on a more European image, moving away from its beginnings, when it was favoured by well-known American rap artists.

It has been reported that Tommy Hilfiger’s European sales grew from£200 million in 2003 to more than£400 million last year. Sales are set to increase further because the company plans to open 50 stores a year over the next three years.

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