For only the second time in its almost 30-year history, LVMH Moët Hennessy Louis Vuitton, the largest luxury conglomerate in the world, is selling a fashion brand.
The last fashion brand that LVMH sold was Christian Lacroix in 2005.
In a statement, Antonio Belloni, LVMH group managing director, said that G-III “has the expertise and capabilities to broaden the brand’s distribution and take it to its next level of success.” Mr. Belloni said that the French company had not been looking to sell Donna Karan until it was contacted by G-III.
According to the transaction announced Monday, G-III will acquire Donna Karan International, Inc., in late 2016 or early 2017.
New York-based G-III owns brands including Bass shoes and Vilebrequin clothing, and has licenses with U.S. sports leagues. It’s looking to expand its brands, and will fund the purchase with loans, according to a statement from LVMH.
Donna Karan herself stepped down from her signature collection last year, to focus on her Urban Zen company and foundation.