Business
G-III Apparel Group to Purchase Iconic Karl Lagerfeld Brand
G-III to Purchase Remaining 81% Stake to Become Sole Owner of Renowned International Fashion Brand Global Retail Brand Sales Potential in Excess of $2
About this update from G-iii Apparel Group, Ltd.
[{"type":"text","content":"\nG-III to Purchase Remaining 81% Stake to Become Sole Owner of Renowned International Fashion Brand\n\nGlobal Retail Brand Sales Potential in Excess of $2 Billion to End Consumers and Expands G-III’s Worldwide Presence\n\nExperienced and Successful Existing Leadership Team Will Continue to Lead Karl Lagerfeld Brand\n\n NEW YORK--(BUSINESS WIRE)--\nG-III Apparel Group, Ltd. (Nasdaq: GIII) (“G-III” or the “Company”), a global fashion leader with expertise in design, sourcing, and manufacturing, today announced that it has entered into an agreement to purchase the remaining 81% interest in famed fashion brand Karl Lagerfeld for €200 million ($210 million USD), subject to certain adjustments and customary closing conditions. G-III will purchase the additional stake in the brand from a group of private and public investors, led by Fred Gehring of Amlon Capital BV. G-III currently owns 19% of the brand and, through this transaction, will become the sole owner of the Karl Lagerfeld brand. The all-cash transaction has been approved by the board of directors of both companies.\n\nMorris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “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. Importantly, the addition of this iconic fashion brand to the G-III portfolio advances several of our key priorities, namely an increase in the direct ownership of brands and their licensing opportunities and further diversification of our global presence.”\n\nMr. Goldfarb continued, “Karl Lagerfeld was an icon of the fashion industry. His namesake brand embodies his spirit as a designer while also appealing to a broad range of consumers throughout the world. We have great respect for Karl Lagerfeld’s experienced and talented leadership team, led by Pier Paolo Righi, with whom we have worked closely for the last seven years. This team, combined with G-III’s expertise, is expected to unlock more of the brand’s global potential, which we believe represents a retail sales opportunity in excess of $2 billion. We are excited to welcome everyone at Karl Lagerfel...