LVMH is selling Marc Jacobs to WHP Global, the parent company of Vera Wang and Rag & Bone, the two companies announced on Thursday.
By buying Marc Jacobs, WHP Global, a New York-based brand-management firm, is adding a crown jewel to a portfolio that includes G-Star, Joe’s, Express, and Vera Wang.
G-III Apparel Group, the owner of Donna Karan, will join with WHP Global in its ownership of the Marc Jacobs brand.
“Marc Jacobs is a designer of rare creativity and unique vision,” LVMH chair and CEO Bernard Arnault said in a statement on Thursday. “His impact on the world of fashion is undeniable, and I want to warmly thank him for his contribution to the success of the maison and the LVMH Group over the last 30 years. 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.”
With the addition of the Marc Jacobs brand, WHP Global will surpass $9.5 billion in global retail sales, according to the press release.
In a separate statement, G-III said that after the transaction closes, G-III and WHP Global will form a 50/50 joint venture that will retain ownership of Marc Jacobs’s intellectual property. G-III will then acquire the Marc Jacobs operating business from the joint venture and enter into a long-term licensing agreement. This represents an approximately $500 million investment for G-III. Therefore, it’s understood that the deal’s valuation is around $1 billion. “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,” G-III’s chair and CEO Morris Goldfarb said in a statement.
Marc Jacobs will continue in his role as founder and creative director, ensuring continuity of the brand’s vision, runway collections, and fashion shows.
“When I met with Yehuda Shmidman [WHP Global chair and CEO], it was abundantly clear that his respect, admiration, appreciation, and love for the house we built was genuine and sincere (and by we, I mean all of us),” Jacobs posted on Instagram. “As I continue on my journey as creative director, I want to express my indebtedness to all of the passionate, hardworking, devoted, creative, and talented teams of people at Marc Jacobs International…I am forever grateful to Bernard Arnault for his support, belief, and trust in me over the last 30 years. It has been an honor and a privilege to work alongside the Arnault family and LVMH.”
