In a significant move within the fashion industry, G-III Apparel Group, Ltd. (NasdaqGS: GIII) has announced a definitive agreement with WHP Global to create a joint venture for the ownership and management of the Marc Jacobs brand. This partnership is poised to redefine the landscape of high fashion and enhance G-III's portfolio of iconic brands.

1. A New Era for Marc Jacobs

Founded in 1984, Marc Jacobs has carved a niche as a culture-defining brand, renowned for its innovative blend of high fashion and contemporary design. Under the guidance of its visionary founder, the brand has maintained a robust international presence, supported by a global retail network comprising company-operated stores and an extensive e-commerce platform, along with a diverse array of wholesale partners.

Morris Goldfarb, G-III's Chairman and CEO, expressed enthusiasm about the acquisition, stating, “Marc Jacobs is one of the most influential names in fashion. This transaction underscores our long-standing commitment to building a diversified portfolio of iconic, globally relevant brands. LVMH has been an exceptional steward of the brand, and we look forward to working with the Marc Jacobs team to build on that strong foundation.”

2. Transaction Overview

The joint venture between G-III and WHP Global will operate on a 50/50 ownership basis, retaining the intellectual property rights of the Marc Jacobs brand. As part of the agreement, G-III will manage the global Marc Jacobs operating business and enter into a long-term licensing agreement with the joint venture.

The financial commitment for G-III is substantial, estimated at approximately $500 million. The company plans to finance this investment using a combination of cash reserves and borrowings from its revolving credit facility. Although the transaction is expected to be dilutive in the first year following its completion, G-III anticipates accretion thereafter.

The closing of this deal is contingent upon customary conditions, including regulatory approvals, and is projected to occur in G-III's fiscal third quarter of 2027.

3. Advisory Teams

The strategic partnership has drawn the expertise of renowned financial and legal advisors. UBS is serving as G-III's financial advisor, while Paul, Weiss, Rifkind, Wharton & Garrison is providing legal counsel. On the side of WHP Global, Morgan Stanley & Co. LLC is acting as their financial advisor with Gibson Dunn serving as legal advisors. Notably, Morgan Stanley Senior Funding, Inc. has committed to providing debt financing to support this ambitious acquisition.

4. G-III Apparel Group: A Leader in Fashion

G-III Apparel Group, Ltd. stands as a formidable player in the global fashion industry, boasting a diverse portfolio of over 30 esteemed brands. The company not only owns ten iconic brands, which include DKNY, Donna Karan, and Karl Lagerfeld, but also licenses more than 20 of the world's most sought-after fashion names. This includes partnerships with major brands like Calvin Klein, Tommy Hilfiger, and Levi’s, as well as licensing agreements with prominent sports leagues such as the NFL, NBA, NHL, and MLB.

5. Conclusion

The partnership between G-III Apparel Group and WHP Global marks a pivotal moment for the Marc Jacobs brand, setting the stage for expanded growth and innovation in the luxury fashion market. As G-III continues to enhance its portfolio with iconic brands, the fashion community eagerly anticipates the future developments stemming from this strategic alliance.

Original press release