LVMH Sells Marc Jacobs to WHP Global-GIII Venture

LVMH Moët Hennessy Louis Vuitton has agreed to sell its Marc Jacobs fashion brand to a 50-50 joint venture between WHP Global and GIII Apparel Group, the companies announced Thursday. The New York-based designer Marc Jacobs will remain as creative director following the transaction, which is expected to close by the end of the year pending regulatory approvals.

Financial terms of the deal were not disclosed. GIII stated in a regulatory filing that it plans to invest up to $425 million in the venture, using available cash and debt. GIII will acquire and operate Marc Jacobs' global direct-to-consumer and wholesale businesses, while WHP Global will oversee licensing. The move adds Marc Jacobs to WHP's portfolio, which includes Vera Wang, Rag & Bone and G-Star, and will push the brand management firm's annual global retail sales above $9.5 billion.

LVMH acquired a majority stake in Marc Jacobs in 1997, after the brand was founded in 1984 by Jacobs and business partner Robert Duffy. Jacobs, a New York native, previously served as artistic director at Louis Vuitton, LVMH's largest profit contributor, for more than a decade. The brand, known for bridging luxury and streetwear through...