LVMH has completed the sale of Marc Jacobs to a joint venture formed by WHP Global and G-III Apparel Group. The transaction, valued at approximately $925 million, ends nearly three decades of LVMH ownership of the New York fashion label. The deal closed Tuesday after the companies announced the agreement earlier this year.
Under the transaction, WHP Global and G-III each hold a 50% equity stake in the new joint venture. The venture owns the intellectual property associated with the Marc Jacobs brand.
The structure separates the ownership of the brand's intellectual property from its day-to-day commercial operations. WHP Global will oversee global licensing activities, while G-III will operate the brand's retail, wholesale, e-commerce and direct-to-consumer businesses under a long-term license.
According to regulatory filings, WHP Global and G-III each contributed up to $425 million to the joint venture. G-III's overall investment, including its acquisition of the operating business, totals approximately $500 million. Marc Jacobs will remain involved with the label as founder and creative director. He is expected to continue leading the brand's runway collections and shaping its broader creative direction.
