Under the terms of the agreement, WHP Global and G-III Apparel Group will create a 50/50 JV that will own the intellectual property of the Marc Jacobs brand.
Simultaneously, G-III will acquire the brand’s operating business from the JV and will enter into a long-term licensing arrangement. It will also assume responsibility for certain global direct-to-consumer and wholesale operations related to the brand.
The JV aims to advance the brand’s growth by utilising WHP’s licensing platform and G-III’s operational capacities.
Post transaction, Marc Jacobs will continue as founder and creative director, overseeing the fashion house’s creative output, runway collections, and runway events.
In a statement, Jacobs said: “I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years. It has been an honour and privilege to work alongside the Arnault Family and LVMH. I remain committed in my role as Creative Director of Marc Jacobs International and look forward to this bright new chapter.”
The agreement enables WHP Global to add Marc Jacobs to its premium fashion portfolio, which also includes Vera Wang, rag & bone, and G-STAR.
Following the acquisition, WHP Global’s combined retail sales are expected to exceed $9.5bn.
LVMH has been the majority owner of Marc Jacobs since 1997, providing strategic support and contributing to the brand’s development.
During this period, Marc Jacobs expanded its global presence and introduced several products across several categories.
LVMH chairman and CEO Bernard Arnault said: “Marc Jacobs is a designer of rare creativity and unique vision. His impact on the world of fashion is undeniable, and I want to warmly thank him for his contribution to the success of the Maison and the LVMH Group over the last 30 years. I am confident that this new chapter will offer new avenues of opportunity for Marc Jacobs, that the brand and its designer will continue to inspire customers and creators around the world.”
The completion of the transaction is subject to standard closing conditions and is expected before year's end.
Financial details were not disclosed. However, media reports indicate that WHP Global and G-III Apparel Group are raising up to $850m to fund the acquisition.
