Donna Karan Brand Sold For $650M

LVMH (Louis Vuitton Moët Hennessy ) and G-III apparel have come to a final agreement on Donna Karan International, parent firm of both Donna Karan and DKNY. The transaction’s total values will clock in at $650 million with customary adjustments at closing. The deal is expected to be done by the end of 2016 or by early 2017.

This marks the second big sale in LVMH’s nearly 30-year history, the first being the sale of Christian Lacroix in 2005. LVMH shares rose about 1 percent on the deal’s announcement. This caps of a sometimes uneasy partnership – Donna Karan has publicly complained about LVMH’s stewardship of her brand since she retired officially last year. LVMH, on the other hand, reports they have actively looked for ways to revive the brand, mostly to no avail.

Donna Karan’s move in recent years toward wholesale and away from her higher-priced apparel has left the brand out of step with its luxury focused parent. LVMH did away with the high-end Donna Karan line, focusing all its efforts on the lower-price DKNY brand. The luxury giant also disbanded lines like DK Jeans and DKNYC during the process.

G-III Apparel Group manufacturers and distributes of apparel and accessories under licensed, owned, and private label brands. Famous names on that list are Marc New York, Bass, Calvin Klein, Tommy Hilfiger, Levi’s and Dockers.

“Donna Karan International is an iconic global fashion company. Its lifestyle aesthetic resonates well with consumers throughout the world,” G-III president/CEO Morris Goldfarb said in a statement. “We are excited to build upon its strong foundation as we seek to capitalize on a significant market opportunity. Donna Karan brings increased scale and diversification, while providing incremental growth on top of our portfolio of some of the best fashion brands in the world.”

LVMH bought Donna Karan in 2002 for around $243 million.