US G-III Apparel to buy 81% stake in Carl Lagerfeld for 200 million

Global fashion leader G-III Apparel Group has entered into an agreement to purchase the remaining 81 percent interest of the famous fashion brand Carl Lazerfeld for € 200 million ($ 210 million) subject to adjustment and traditional closing conditions. Amlon Capital will buy additional stakes from a group of G-III investors led by Fred Gehring of BV.

G-III currently owns 19 percent of the brand and, through this transaction, will become the sole owner of the Carl Lagerfeld brand. All cash transactions have been approved by the board of directors of both companies, they said in a joint statement.

The transaction is expected to close in the second or third quarter of FY 2023.

Global fashion leader G-III Apparel Group has entered into an agreement to purchase the remaining 81 percent interest of the famous fashion brand Carl Lazerfeld for € 200 million ($ 210 million) subject to adjustment and traditional closing conditions. Amlon Capital will buy additional stakes from a group of G-III investors led by Fred Gehring of BV.

The acquisition includes a 10 percent stake in Carl Lagerfeld’s existing joint venture in China. G-III believes that the acquisition is expected to increase the overall economic value of the company and improve the quality of long-term shareholders.

The acquisition adds about $ 200 million to the initial annual sales. Combined with G-III’s existing Carl Ledgerfeld business in North America, which ended on January 31, 2022, with its 175 million revenue in FY 2022, the acquisition is expected to create an initial annual revenue base of approximately $ 375 million for a business. G-III believes that the combined revenue of G-III’s Carl Lagerfeld business and the acquired Carl Lagerfeld business represents an annual net revenue potential for end consumers of approximately $ 1 billion or more than $ 2 billion in sales, and this acquisition will expand G. III’s global presence.

Maurice Goldfarb, Chairman and CEO of G-III, Says: “This transaction marks another significant milestone for the G-III. Since acquiring a partnership with the brand in 2015, G-III has built Carl Lagerfeld as an important and fast-growing part of our North American business. Continuation of our successful partnership with the Carl Lagerfeld Management Team, wholly owned by this visionary brand. Importantly, the addition of this iconic fashion brand to the G-III portfolio pushes us to several key priorities, such as direct ownership of brands and increasing the scope of their licensing and further diversifying our global presence.

Pierre Paolo Righi, CEO of Carl Lagerfeld, Says: “Over a decade – including working with Carl for many years – we have built a versatile fashion house and a strong business that we believe is ready for continued and significant growth. Carl’s original vision for the brand was to inspire people around the world to join his universe through creativity, and I’m sure he would be proud of how his vision and passion came to life.

Fibre2Fashion News Desk (KD)