WHP Global in deal to acquire Marc Jacobs
WHP Global is adding a high-profile luxury brand to its fashion portfolio.
The brand management company, in a joint venture with G-111 Apparel Group, has reached an agreement to acquire Marc Jacobs from LVMH Moët Hennessy Louis Vuitton. Financial terms of the deal were not disclosed. But the Wall Street Journal put the deal at $850 million, with the two companies agreeing to pay $425 million each to buy the brand and split ownership 50/50.
Following the closing of the transaction, Jacobs, who founded the company in 1984 with Robert Duffy, will continue his role as creative director, ensuring continuity for the brand’s vision, runway collections and fashion shows, the companies said.
LVMH bought the Marc Jacobs brand in 1997 and went on to provide strategic support and resources necessary to build its global presence.
"I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years,” Jacobs stated. “It has been an honor 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."
As part of the agreement, G-III Apparel Group will partner with WHP Global in a 50/50 joint venture in owning the brand. G-III will acquire and operate portions of the fashion brand’s DTC and wholesale businesses, while WHP Global will oversee its licensing. (G-III’s portfolio includes DKNY, Donna Karan, Karl Lagerfeld, Sonia Rykiel, and Vilebrequin, and it also licenses over 20 global fashion brands.)
WHP Global said the brand will become a cornerstone of its premium fashion vertical, joining Vera Wang, rag & bone, and G-Star further strengthening the company's presence across high-growth global fashion categories.
With the addition of the Marc Jacobs, WHP will surpass $9.5 billion in global retail sales.
