LVMH Moët Hennessy Louis Vuitton announced on Thursday that it has reached a definitive agreement to divest the Marc Jacobs fashion house to WHP Global, a company that specializes in brand management. The move concludes a relationship that started in 1997, when LVMH acquired a majority stake in Marc Jacobs.
Over the course of nearly three decades under LVMH's ownership, the Marc Jacobs label expanded its product assortment to include handbags, leather goods, ready-to-wear collections, footwear, eyewear, and fragrance. The conglomerate supported that growth as part of its luxury portfolio.
Under the terms of the agreement, Marc Jacobs will retain his role as Founder and Creative Director of the brand once the transaction is completed. Commenting on the deal, Marc 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 honor and privilege to work alongside the Arnault Family and LVMH."
Bernard Arnault, Chairman and CEO of LVMH, issued a statement of thanks to the designer, saying, "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."
The Marc Jacobs label will be integrated into WHP Global's fashion holdings, joining brands such as Vera Wang, rag & bone, and G-STAR. WHP Global said that with the addition of Marc Jacobs, its portfolio will surpass $9.5 billion in global retail sales.
As part of the transaction structure, G-III Apparel Group will partner with WHP Global on ownership and will acquire specific elements of the Marc Jacobs brand's direct-to-consumer and wholesale operations. The announcement did not detail which operational segments G-III will take on beyond that description.
The parties said the deal is expected to close before the end of the year, contingent on customary closing conditions. No further timing or financial terms were disclosed in the announcement.
Summary
LVMH has signed a definitive agreement to sell the Marc Jacobs brand to WHP Global. Marc Jacobs will remain Founder and Creative Director. G-III Apparel Group will partner with WHP Global and acquire certain direct-to-consumer and wholesale business elements. The transaction is expected to close before year-end, subject to standard closing conditions.