The Tamesis
LVMH will sell Marc Jacobs to WHP Global, the parent company of Vera Wang and Rag & Bone, for an undisclosed amount, the companies announced Thursday.
With the acquisition of Marc Jacobs, New York-based brand management company WHP Global adds a crown jewel to a portfolio that includes G-Star, Joe’s, Express and Vera Wang.
G-III Apparel Group, owner of Donna Karan, will own the Marc Jacobs brand along with WHP Global.
“Marc Jacobs is a designer of rare creativity and unique vision,” LVMH Chairman and CEO Bernard Arnault said in a statement on Thursday. “His impact on the fashion world is undeniable, and I would like to warmly thank him for his contribution to the success of the brand and the LVMH Group over the past 30 years. I am confident that this new chapter will provide new opportunities for Marc Jacobs, and that the brand and its designers will continue to inspire customers and creators around the world.”
According to a press release, with the addition of the Marc Jacobs brand, WHP Global’s global retail sales will exceed US$9.5 billion.
G-III said in a separate statement that after the transaction is completed, G-III and WHP Global will form a 50/50 joint venture to retain ownership of Marc Jacobs’ intellectual property. Subsequently, G-III will acquire the Marc Jacobs operating business from the joint venture and enter into a long-term licensing agreement. This represents an investment of approximately $500 million in G-III. Therefore, it is understood that the transaction is valued at approximately US$1 billion. “Marc Jacobs is one of the most influential brands in fashion. This transaction underscores our long-standing commitment to building a diverse portfolio of iconic, globally relevant brands,” G-III Chairman and CEO Morris Goldfarb said in a statement.
Following the transaction, Marc Jacobs will remain as founder and creative director, ensuring continuity of the brand’s vision, collections and runway shows.
“When I met Yehuda Schmidman [WHP Global chair and CEO]It’s clear that his respect, admiration, appreciation and love for the house we build is genuine (and by that we mean all of us),” Jacobs wrote on Instagram. “As I continue my journey as Creative Director, I would like to express my gratitude to the entire passionate, hard-working, dedicated, creative and talented team at Marc Jacobs International… I am forever grateful to Bernard Arnault for his support, trust and belief in me over these past days. 30 years. It is an honor to work with the Arnault family and LVMH. “
