LVMH Divests Marc Jacobs to WHP Global and G-III Apparel Group
LVMH to sell Marc Jacobs to WHP, G-III
The Economic Times
Image: The Economic Times
LVMH has sold the Marc Jacobs fashion label to a joint venture between WHP Global and G-III Apparel Group as part of its strategy to respond to declining demand. The deal, involving an investment of up to $425 million, allows founder Marc Jacobs to remain as creative director, while expanding WHP's portfolio and boosting its annual revenue to over $9.5 billion.
- 01WHP Global and G-III Apparel Group will operate the Marc Jacobs brand through a 50-50 joint venture.
- 02G-III Apparel Group plans to invest up to $425 million in the acquisition.
- 03Marc Jacobs will continue his role as creative director for the brand.
- 04The acquisition will increase WHP Global's annual revenue to more than $9.5 billion.
- 05This sale marks a rare divestment for LVMH, the world's largest luxury group.
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LVMH, the world's largest luxury goods conglomerate, has agreed to sell the Marc Jacobs fashion label to a joint venture between WHP Global and G-III Apparel Group. This move comes as LVMH responds to softer demand in the luxury market. Although the financial terms of the deal were not disclosed, G-III Apparel Group announced plans to invest up to $425 million in the venture, which will be evenly split between the two companies. Marc Jacobs, the brand's founder, will retain his position as creative director, ensuring continuity in the brand's vision. This acquisition will enhance WHP Global's portfolio, which includes other notable brands such as Vera Wang and Rag & Bone, and is expected to elevate its annual revenue to over $9.5 billion.
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