G-III Apparel to buy remaining 81% of Karl Lagerfeld brand for 200 million euros

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G-III Apparel Group Ltd. GIII, +2.76% said Monday it has agreed to acquire the remaining 81% stake in the Karl Lagerfeld brand for 200 million euros ($210 million) from a group of private and public investors led by Fred Gehring of Amlon Capital BV. The all-cash deal will make G-III the sole owner of the brand. The deal "advances several of our key priorities, namely an increase in the direct ownership of brands and their licensing opportunities and further diversification of our global presence," Chief Executive Morris Goldfarb said in a statement. The brand is expected to generate more than $2 billion in revenue, he continued. The deal includes Karl Lagerfeld's 10% stake in a Chinese joint venture and will add about $200 million in initial annual sales. The deal is expected to modestly boost earnings in fiscal 2023 through Jan. 31 and to be incrementally more accretive after that. The deal is expected to close in the second or third quarter of fiscal 2023. G-III shares were not yet active premarket, but have fallen 4% in the year to date, while the S&P 500 SPX, +0.11% has fallen 13.3%.

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