The manufacturer of luxury goods LVMH Moet Hennessy Louis Vuitton SE has reached an agreement for the sale of Donna Karan International Inc. to G-III Apparel Group Ltd. for 650 million dollars. This happens a year after the founder of the female fashion brand departed, writes Bloomberg.
G-III will acquire the brands Donna Karan and DKNY. It is expected the transaction to close as early as the end of next year.
“When G-III approached us about acquiring the brand, we concluded that the time was right,” commented LVMH CEO Toni Belloni.
Donna Karan founded the fashion brand in 1984 with her husband Steven Weiss. She stepped down as a chief designer last year to focus on other projects such as Urban Zen.
G-III makes dresses, suits and sportswear under brands including Calvin Klein and Vince Camuto.
G-III expects the deal to affect the profit for the financial year ending in January 2018, and then boost the financial results.
New York-based company will finance the purchase through debt. Advisor to G-III is Barclays Plc.