French luxury group LVMH has agreed to sell Donna Karan International to American manufacturing and licensing company G-III Apparel Group in a deal valuing the fashion brand at $650 million, the companies said on Monday.
The sale of Donna Karan International, parent of the Donna Karan and DKNY brands, is expected to close in late 2016 or early 2017, they said in a joint statement.
G-III (giii) owns brands such as Vilebrequin, Andrew Marc, Marc New York, Bass, G.H. Bass and Weejuns, while holding licences for Calvin Klein, Tommy Hilfiger and Karl Lagerfeld among others.
It will fund the deal through new debt and $75 million of G-III common stock to be issued to LVMH (lvmhf).
G-III has obtained financing commitments from Barclays and JPMorgan Chase for a $525 million ABL credit facility and a $450 million six-year term loan.