LVMH to sell Marc Jacobs to WHP Global, G-III as buyers raise $850 million
Major Sale Marks Strategic Shift in Luxury Fashion Industry
By Chandni Shah and Mrinmay Dey
May 14 (Reuters) - French luxury group LVMH has agreed to sell fashion brand Marc Jacobs to a joint venture between brand manager WHP Global and apparel company G-III Apparel Group, which are raising up to $850 million to fund the deal, the companies said on Thursday.
Background and Industry Context
Marc Jacobs' sale closes a nearly three-decade chapter for LVMH and reflects a broader push to focus on profitability in a challenging luxury market, where conflict in the Middle East continues to disrupt travel and weighs on spending in a key region.
The transaction highlights a broader shift in the luxury sector, with conglomerates such as LVMH rationalizing non-core assets while specialist brand managers and manufacturers become natural buyers for "accessible luxury" and American designer names, supply chain consultant Brittain Ladd said.
Strategic Rationale
"This underscores a new playbook of owning the IP, licensing aggressively and keeping operations lean," Ladd, consultant at Florida-based Chang Robotics said.
LVMH said last month the Iran war shaved at least 1% off group sales in the latest quarter, with lower Gulf spending and fewer tourists in Europe adding to the weakness.
Comparable Transactions
Similar deals have moved well-known labels from large consumer companies to brand managers, including Adidas' 2021 sale of Reebok to Authentic Brands Group for up to 2.1 billion euros.
Reuters reported last year that the Bernard Arnault-led company had been holding talks with potential buyers including WHP Global and Reebok-owner Authentic Brands Group for the sale of Marc Jacobs.
Creative Continuity
New York-based WHP Global said Marc Jacobs would become a core part of its premium fashion portfolio, which includes Vera Wang, rag & bone and G-STAR, taking its global retail sales above $9.5 billion.
Leadership and Brand Direction
Founder Marc Jacobs, who launched the label in 1984, will remain creative director after the deal closes, overseeing its creative direction and runway collections. LVMH acquired a majority stake in Jacobs' brand in 1997, the same year it named him Louis Vuitton's first creative director.
Impact on Louis Vuitton
At Louis Vuitton, Jacobs introduced ready-to-wear collections and artist collaborations, including with Richard Prince and Takashi Murakami, helping fuse fashion, art and pop culture.
"I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years," Jacobs said on Instagram.
Deal Economics
Under the deal, WHP will form a 50/50 joint venture with G-III to own Marc Jacobs' intellectual property.
Transaction Structure and Funding
The transaction is expected to be completed before year-end, the companies said in a joint statement.
G-III will acquire and manage the brand globally, while WHP will oversee licensing.
Financial terms for the deal were not disclosed. However, a regulatory filing showed G-III and WHP would each contribute up to $425 million to fund the acquisition.
G-III's Investment Approach
G-III, which owns brands including Karl Lagerfeld and DKNY, said it would fund its investment with cash and its revolving credit facility.
(Reporting by Chandni Shah in Bengaluru, Mrinmay Dey in Mexico City; Editing by Shailesh Kuber and Sherry Jacob-Phillips)
