Luxury goods company Tommy Hilfiger Corporation has signed a deal to acquire the trademarks of fashion house Karl Lagerfeld for an unspecified amount.

The agreement includes Lagerfeld Galleries and other collections, but not Lagerfeld's contracts with fashion labels Chanel and Fendi.

The two parties have also agreed that the label's designer Karl Lagerfeld will continue to design and provide creative direction for his brands, which are presently in a start-up phase.

As part of the label's expansion programme, Lagerfeld and Tommy Hilfiger will develop the brands throughout the US, focusing especially on upmarket department stores and speciality store channels.

David Dyer, president and chief executive officer of Tommy Hilfiger Corporation, said the acquisition was an important part of the company's ongoing focus on creating "a multi-brand portfolio of businesses".

He added: "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."

Dyer said that although the company expected Lagerfeld's business to be dilutive to  its immediate results, as it was in the start-up period, they believe it will an important contribution to revenue and earnings in the long term.

Lagerfeld said he was looking for a business partner who had created their business on a global basis, and had "the infrastructure and resources" to allow the company's wishes for the brand to become reality.

The transaction is expected to be completed within the next 30 days, subject to closing conditions.

Tommy Hilfiger Corporation, through its subsidiaries, designs, sources and markets men's and women's sportswear, jeanswear and childrenswear under the Tommy Hilfiger trademarks. Through a range of strategic licensing agreements, the Company also offers a broad array of related apparel, accessories, footwear, fragrance and home furnishings..

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.