GIII to acquire Marc Jacobs operating business in $500 million deal

G-III Apparel Group Ltd. (NASDAQ: GIII) announced it has entered into a definitive agreement with WHP Global to jointly own Marc Jacobs brand intellectual property through a new joint venture.

Under the arrangement, G-III will acquire and manage the global Marc Jacobs operating business, while WHP Global will handle licensing operations. The companies will form a 50/50 joint venture to retain ownership of Marc Jacobs' intellectual property.

G-III will fund its approximately $500 million investment using cash on hand and borrowings under its revolving credit facility. The company expects the transaction to be dilutive during the first 12 months after closing, with accretion anticipated thereafter.

"Marc Jacobs is one of the most influential names in fashion," said Morris Goldfarb, G-III's Chairman and Chief Executive Officer. "This transaction underscores our long-standing commitment to building a diversified portfolio of iconic, globally relevant brands."

Marc Jacobs, founded in 1984, operates company-owned stores worldwide and distributes products through its e-commerce platform and wholesale partners. The brand was previously owned by LVMH.

The transaction structure involves WHP Global first acquiring Marc Jacobs, then forming the joint venture with G-III. G-III will subsequently acquire the operating business from the joint venture and enter into a long-term licensing agreement.

Closing is subject to customary conditions, including regulatory approval, and is expected to occur in G-III's fiscal third quarter of 2027.

UBS serves as financial advisor to G-III, with Paul, Weiss, Rifkind, Wharton & Garrison as legal advisor. Morgan Stanley serves as financial advisor to WHP Global.

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