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LVMH to Sell Marc Jacobs to WHP Global, With G-III to Run the Business

The sale signals LVMH's push to streamline its portfolio to concentrate resources on its biggest brands.

Overview

  • A definitive agreement announced Thursday transfers Marc Jacobs from LVMH to WHP Global, with WHP and G-III forming a 50/50 joint venture to own the brand’s intellectual property and closing expected before year end pending approvals.
  • G-III will acquire and operate the global retail, e-commerce and wholesale business under a long-term license, and the company said it plans to fund about $500 million with cash and borrowings.
  • Multiple outlets reported a transaction value of roughly $850 million, though the companies did not disclose a price in their statements.
  • Marc Jacobs will remain founder and creative director to keep the label’s creative direction and runway shows on course, while Coty retains the long-term beauty and fragrance licenses outside this deal.
  • WHP said Marc Jacobs will anchor its premium fashion portfolio and push its brands above $9.5 billion in global retail sales, a shift that also tracks LVMH’s recent exits from smaller labels during a weaker luxury cycle.