LVMH agrees sale of Marc Jacobs
LVMH has agreed to sell Marc Jacobs to a joint venture between WHP Global and G-III Apparel Group, ending its nearly 30-year ownership of the US fashion brand.
The deal will see the two companies form a 50-50 venture to acquire the intellectual property, with up to $850m (€780m) being raised to fund the transaction. Each partner is expected to contribute up to $425m (€390m).
Financial terms were not disclosed, although regulatory filings confirmed the equal funding structure. The deal is expected to complete before the end of the year.
Marc Jacobs, who founded the brand in 1984, will remain creative director following the sale.
WHP Global said the brand will become a core part of its premium portfolio, while G-III Apparel Group will manage global operations.
LVMH acquired a majority stake in Marc Jacobs in 1997. The group is currently streamlining its portfolio as it focuses on profitability in a softer luxury market.
