Key Takeaways:
WHP Global will acquire the Marc Jacobs brand from LVMH Moët Hennessy Louis Vuitton, adding a cornerstone to its fashion portfolio and pushing its global retail sales past $9.5 billion. The companies announced the definitive agreement on May 14, with the financial terms of the deal not disclosed.
"Marc Jacobs is a designer of rare creativity and unique vision," Bernard Arnault, Chairman and CEO of LVMH, said in a statement. "I am confident that this new chapter will offer new avenues of opportunity for Marc Jacobs, that the brand and its designer will continue to inspire customers and creators around the world."
Under the terms of the deal, G-III Apparel Group will join WHP Global in its ownership of the brand and will also acquire and operate parts of Marc Jacob's global direct-to-consumer and wholesale businesses. Marc Jacobs will continue in his role as Founder and Creative Director, ensuring continuity for the brand's vision. The transaction is expected to close before the end of the year, subject to customary closing conditions.
The sale marks a strategic divestment for LVMH, which has been a partner to the Marc Jacobs brand for nearly 30 years after acquiring a majority stake in 1997. The move follows LVMH's recent sales of other non-core assets, including the sale of Donna Karan to G-III in 2016. For WHP Global, a brand management firm founded in 2019, the acquisition significantly strengthens its premium fashion vertical, which already includes brands like Vera Wang, rag & bone, and G-STAR.
The deal structure leverages WHP Global's licensing platform and G-III's operational expertise to accelerate the brand's next growth phase. Marc Jacobs, founded in 1984, has long been an influential name in American fashion, positioned in the accessible luxury segment.
"I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years," Marc Jacobs said. "I remain committed in my role as Creative Director of Marc Jacobs International and look forward to this bright new chapter."
The divestment comes as the broader luxury sector experiences a slowdown, prompting companies like LVMH to reassess their portfolios and focus on their largest, highest-margin brands. While LVMH does not break out sales for individual houses, Marc Jacobs is considered one of the smaller brands within its fashion and leather goods division.
This article is for informational purposes only and does not constitute investment advice.
