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G-III Apparel Buys Marc Jacobs Brand in Major Shift
5 Jun
Summary
- G-III Apparel is acquiring the Marc Jacobs brand from LVMH Moët Hennessy Louis Vuitton.
- The deal is a joint venture with WHP Global, with both contributing $425 million.
- G-III aims to build the brand's long-term value, focusing on department store sector expertise.
G-III Apparel Group is embarking on a new strategic direction, transitioning away from a majority of its Calvin Klein and Tommy Hilfiger licensed operations to acquire the renowned Marc Jacobs brand. This significant acquisition is structured as a joint venture with WHP Global, with both entities contributing $425 million towards the purchase of the brand's intellectual property. G-III will also invest approximately $75 million for the operating business.
Morris Goldfarb, chairman and CEO of G-III Apparel, described the deal as an 'awesome acquisition' that has been in development for several years. He emphasized that the focus is on building the brand for long-term value, aligning with G-III's core competencies in the department store sector. The company does not intend to drastically alter distribution channels or create immediate high volume, but rather to capitalize on the brand's cultural relevance and creative authority. Collaboration with the existing management team is a key aspect of this strategy, ensuring alignment on the brand's future trajectory.
