(Reuters) -G-III Apparel Group Ltd said on Monday it has agreed to acquire the remaining 81% stake in Karl Lagerfeld for $210 million in cash, becoming the sole owner of the Parisian fashion brand.
G-III, which owns brands including DKNY and Jessica Howard, will purchase the additional stake from a group of investors led by Fred Gehring of Amlon Capital BV. The apparel maker first acquired a stake in the brand in 2015.
G-III said it expects the brand to represent more than $2 billion in retail sales.
Launched in 1984 by German fashion designer Karl Lagerfeld – known for his pony-tailed hair and tinted sunglasses as well as his association with luxury brands Chanel and LVMH’s Fendi – the eponymous brand offers Parisian fashion combined with rock-chic styles, sported by everyone from model Kate Moss to Formula 1 star Lewis Hamilton.
The fashion icon passed away in 2019.
Karl Lagerfeld has approximately 120 company and partner-operated stores worldwide, with key locations in Paris, London, Moscow, New York and Shanghai among others.
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The deal is expected to close in the second or third quarter of fiscal year 2023, G-III said, adding, it would add $200 million in initial annual sales.
(Reporting by Deborah Sophia in Bengaluru; Editing by Rashmi Aich)