G-III Apparel Group, designer, manufacturer and marketer of branded apparel and accessories, has entered into a definitive agreement with French multinational luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton (LVMH) to acquire Donna Karan International, Inc., which includes both the Donna Karan and DKNY brands. The transaction is valued at $650 million and is expected to close in late 2016 or early 2017.
The acquisition is only the second time LVMH has agreed to sell one of its fashion brands in its 30-year history. The first was Christian Lacroix, in 2005. According to Toni Belloni, Group Managing Director of LVMH, G-III approached the company to acquire Donna Karan and has the means to broaden the brand’s distribution.
“Donna Karan International is an iconic global fashion company,” said Morris Goldfarb, Chairman, CEO and President of G-III in a statement. “Its lifestyle aesthetic resonates well with consumers throughout the world. We are excited to build upon its strong foundation as we seek to capitalize on a significant market opportunity. Donna Karan brings increased scale and diversification, while providing incremental growth on top of our portfolio of some of the best fashion brands in the world.”
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G-III currently owns fashion brands Andrew Marc, Vilebrequin and G.H. Bass & Co., and also holds licenses for fashion houses such as Ivanka Trump, Calvin Klein and Tommy Hilfiger.
