WHP and G-III Finalise $925 Million Marc Jacobs Deal

NEW YORK — After nearly 30 years under the umbrella of French luxury conglomerate LVMH, Marc Jacobs is officially in American hands.

The brand management company WHP Global and the apparel maker G-III on Tuesday said they have closed their roughly $925 million acquisition of the label from LVMH through a newly formed joint venture between the two companies.

The deal has raised eyebrows since it was announced in May in part because of the unusual nature of the partnership: WHP and G-III together now own the brand’s intellectual property, while G-III takes over its business operations as a long-term licensee of the joint venture.

Jacobs will remain creative director of the label he founded in 1984 with his original business partner Robert Duffy, and said in an interview with The Business of Fashion in August that although he was unsure of how the company will be structured under new ownership, he was optimistic.

“I guess what I’m experiencing today is a little back-to-school anxiety,” Jacobs said. “My comparison is like I would be anxious if I were starting school on September 1st, but starting a new school on September 1st would have me in such panic. I have fears and concerns and anxiety and stress and doubts. And hopes. So let’s see how it goes. Let’s work with them.”

The deal’s closing marks the end of a yearslong period of uncertainty for the designer over the fate of his business under LVMH, which once included talks of a public offering and then a failed bid to sell it to Authentic Brands Group for a reported $1 billion late last year.

With WHP and G-III in the driver’s seat, Jacobs said he is hopeful the brand’s near future will include a more robust “democratic and commercial offering,” especially in ready-to-wear, which has been mostly absent since his once-thriving Marc by Marc Jacobs label was dismantled a decade ago. He wants to continue the small-scale business model for his runway collections that he introduced after the pandemic, which both WHP and G-III have publicly endorsed thus far.

The transaction is the latest sign that brand management companies like WHP and ABG, often backed by private equity firms, are moving upmarket as they evolve from distressed-asset scavengers to acquirers of more premium, culturally relevant brands with long-term value.

WHP and G-III each paid $425 million for an equal stake in the Marc Jacobs brand, representing a significant discount on LVMH’s earlier asking price, likely reflecting concerns over profitability potential and the high expense of maintaining a “halo” designer collection. G-III’s deal to buy the operating business pushed its total investment to approximately $500 million.

WHP and G-III expressed confidence that Marc Jacobs was worth the price. Yehuda Shmidman, chairman and CEO of WHP, has already met with retailers, distributors and potential licensees overseas and said there was enormous interest in the brand. He also cited the success of Coty’s relaunch of Marc Jacobs Beauty in May as an example of the designer’s ongoing strength.

On Monday, he said the immediate plan for Marc Jacobs is to maintain the status quo. Asked if Eric Marechalle, the LVMH-appointed CEO of Marc Jacobs who has had a successful run with Jacobs since 2017, would remain, Shmidman responded, “The basic plan is no changes. The basic plan is to layer on growth.”

Both Shmidman and Morris Goldfarb, chairman and CEO of G-III, have emphasised their support of Jacobs’ ongoing involvement in the company and recognised the importance of continuing the runway model for now. As part of the deal, the joint venture will be governed by a five-member board of managers, with three members appointed by WHP and two by G-III.

“This is a big, big deal for us,” Shmidman said. “We look at Marc and see someone who’s super-talented, super-unique and makes a huge impact on the fashion world. He makes an impact on the culture at large, constantly. And so the idea of being able to partner with him and the brand is huge for us.”

“This closing marks an exciting new chapter for Marc Jacobs, a brand with a distinctive creative legacy and global reach,” Goldfarb said in a statement. “We look forward to working with the Marc Jacobs team and WHP Global to protect what makes the brand special while supporting its continued growth worldwide.”

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.