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G-III to Purchase Karl Lagerfeld in $210 Million All-Cash Transaction

G-III Purchase Karl Lagerfeld $210 Million All-Cash
Photo courtesy of Karl Lagerfeld

G-III Apparel Group is expanding its global footprint with the purchase of the remaining 81% interest in Karl Lagerfeld that would make the apparel design, sourcing and manufacturing firm sole owner of the luxury fashion house. The all-cash $210 million transaction, led by Fred Gehring of Amlon Capital BV with a group of private and public investors, was approved by the boards of both companies.

The acquisition is expected to close in Q2 or Q3 of G-III’s FY 2023, which ends Jan. 31, 2023. G-III acquired its initial stake in the company in 2015. Founder Karl Lagerfeld passed away in February 2019.

Karl Lagerfeld includes approximately 120 single brand and partner-operated brick-and-mortar locations, including doors in Paris, London, Berlin, Dubai and Shanghai. The brand also includes a wholesale distribution network in the U.S., Europe, the Middle East and Asia as well as a branded presence at karl.com and karllagerfeldparis.com in addition to other retail digital platforms. 

“We have great respect for Karl Lagerfeld’s experienced and talented leadership team, led by Pier Paolo Righi, with whom we have worked closely for the last seven years,” said Morris Goldfarb, Chairman and CEO of G-III said in a statement. “This team, combined with G-III’s expertise, is expected to unlock more of the brand’s global potential, which we believe represents a retail sales opportunity in excess of $2 billion.”

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Through its purchase of Karl Lagerfeld, G-III will add to its impressive roster of owned brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York and Sonia Rykiel. The company retains fashion licenses under Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi’s and Dockers. Additional sports licenses for G-III include the National Football League, National Basketball Association, Major League Baseball, National Hockey League and more than 150 colleges and universities within the U.S. G-III also boasts a DTC business through DKNY, Karl Lagerfeld Paris and Vilebrequin stores, and digital channels for DKNY, Donna Karan, Vilebrequin, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass.

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