G-III Apparel Group to take full ownership of Karl Lagerfeld brand
G-III Apparel Group has entered into an agreement to purchase the remaining 81% interest in Karl Lagerfeld for £167 million ($210 million), subject to certain adjustments and customary closing conditions.
The group will purchase the additional stake in the brand from a group of private and public investors, led by Fred Gehring of Amlon Capital BV.
G-III currently owns 19% of the brand and, through this transaction, will become the sole owner of the Karl Lagerfeld brand. The all-cash transaction has been approved by the board of directors of both companies.
G-III believes that the combined revenues of G-III’s Karl Lagerfeld business and the acquired Karl Lagerfeld business represent an annual net revenue potential of approximately £797 million ($1 billion) or in excess of £1.5 billion ($2 billion) in sales to end consumers, and that this acquisition will expand G-III’s global presence.
G-III designs, sources and markets apparel and accessories under owned, licensed and private label brands. The group's portfolio of over 30 licensed and proprietary brands includes DKNY, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris.
Morris Goldfarb, Chairman and CEO of G-III, said: “This transaction marks yet another significant milestone for G-III. The addition of this iconic fashion brand to the G-III portfolio advances several of our key priorities, namely an increase in the direct ownership of brands and their licensing opportunities and further diversification of our global presence.”