G-III Apparel Group (NASDAQ:GIII) said on Monday it has agreed to acquire the remaining 81% stake in Karl Lagerfeld for $210 million in cash, becoming the sole owner of the Parisian fashion brand.
G-III, which owns brands including DKNY and Jessica Howard, will purchase the additional stake from a group of investors led by Fred Gehring of Amlon Capital BV. The apparel maker first acquired a stake in the brand in 2015.
G-III said it expects the brand to represent more than $2 billion in retail sales.
Launched in 1984 by German fashion designer Karl Lagerfeld - known for his pony-tailed hair and tinted sunglasses as well as his association with luxury brands Chanel and LVMH’s Fendi - the eponymous brand offers Parisian fashion combined with rock-chic styles, sported by everyone from model Kate Moss to Formula 1 star Lewis Hamilton.
Said G-III CEO Morris Goldfarb “This transaction marks yet another significant milestone for G-III. Since acquiring a stake in the brand in 2015, G-III has built Karl Lagerfeld into an important and rapidly growing part of our North American business. Fully owning this visionary brand is a continuation of our successful partnership with the Karl Lagerfeld management team.”
The fashion icon passed away in 2019.
The deal is expected to close in the second or third quarter of fiscal year 2023, G-III said, adding, it would add $200 million in initial annual sales.
G-III shares gained 30 cents, or 1.2% to $26.79.
