[GENEVA] LVMH Moet Hennessy Louis Vuitton SE agreed to sell Donna Karan International Inc to G-III Apparel Group Ltd for an enterprise value of $650 million, a year after the founder of the women's clothing brand departed.
G-III will gain the Donna Karan and DKNY brands, the companies said in a statement Monday. They said they expect to complete the transaction by early next year.
"When G-III approached us about acquiring the brand, we concluded that the time was right," Toni Belloni, managing director of LVMH, said in the statement.
Donna Karan founded the fashion label in 1984 with her late husband, Stephan Weiss. She stepped down as chief designer last year to focus on other projects such as Urban Zen.
G-III makes dresses, suits and sportswear under brands such as Calvin Klein and Vince Camuto.
G-III said it expects the acquisition to weigh on profit in the fiscal year through January 2018, and boost earnings from then on. The New York-based company is taking on debt to fund the purchase.
Barclays Plc advised G-III.