As you
may already be aware, G-III has an interest in Karl Lagerfeld. The interest
goes beyond the typical licensing agreement. They actually have acquired a
minority stake in the Karl Lagerfeld parent company.
Before
you get to the new information, here is a summary of what occurred back in June
2015:
June
08, 2015
G-III
Apparel Group, Ltd. and Karl Lagerfeld Group BV, the parent company of the Karl Lagerfeld global
brand, announced that they have entered into a joint venture agreement for the
development of the iconic designer’s namesake brand in the North American
market. Under the terms of the agreement, Karl Lagerfeld Group BV has assigned
the Karl Lagerfeld marks for all consumer products (except eyewear, fragrance,
cosmetics, watches, jewelry, and hospitality services, all of which remain
exclusively with Karl Lagerfeld Group BV) and apparel in the United States and
Canada. In addition, the joint venture will be granted an exclusive,
irrevocable, royalty-free license to use the marks in Mexico with respect to the
same products. G-III acquired a 49% interest in the joint venture. G-III is also
the first licensee of the joint venture and has been granted a five year license
(with two renewals of five years each) for women’s apparel, women’s handbags,
and men’s outerwear. The joint venture expects to grant additional category
licenses over time to G-III and/or to other parties.
This month G-III
Apparel Group, Ltd. strengthened the companies partnership with the Karl
Lagerfeld brand through the minority investment in the Lagerfeld parent
company.
February
25, 2016: G-III Apparel
Group, Ltd. (NasdaqGS:GIII) and the parent company of the KARL LAGERFELD brand
announced that G-III has taken a 19% minority stake in the parent
company. This investment will strengthen the partnership between G-III
and the KARL
LAGERFELD brand and extend their business development opportunities on a
global scale. Additional terms of the deal were not disclosed.
This investment is in
addition to G-III’s ownership of a 49% interest in the North American joint
venture that holds rights to
the KARL LAGERFELD trademarks for consumer products (with certain exceptions)
and apparel in the United States, Canada and Mexico. G-III is also the licensee
of the joint venture for KARL LAGERFELD women’s apparel, women’s handbags and
men’s outerwear.
G-III is a leading
manufacturer and distributor of outerwear, dresses, sportswear, swimwear,
women's suits, women's performance wear, footwear, luggage, women's handbags,
small leather goods and cold weather accessories under licensed brands, owned
brands and private label brands. G-III sells swimwear, resort wear, and related
accessories under its own Vilebrequin brand. G-III also sells outerwear and
performance wear under its own Andrew Marc and Marc New York brands, and has
licensed these brands to select third parties in certain product categories.
G-III has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl
Lagerfeld, Kenneth Cole, Cole Haan, Guess?, Jones New York, Jessica Simpson,
Vince Camuto, Ivanka Trump, Ellen Tracy, Kensie, Levi's and Dockers brands.
Through its team sports business, G-III has licenses with the National Football
League, National Basketball Association, Major League Baseball, National Hockey
League, Touch by Alyssa Milano and more than 100 U.S. colleges and universities.
Other owned brands include Bass, G.H. Bass, G-III Sports by Carl Banks, Eliza J,
Black Rivet and Jessica Howard. G-III also operates retail stores under the
Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein
Performance names.
Learn more about the
financials
of G-III Apparel Group in the financial section here on Apparel
Search.
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