Global fashion leader with expertise in design, sourcing, and manufacturing, GII Apparel Group has entered an agreement to purchase remaining 81 per cent stake in famed fashion brand Karl Lagerfeld for €200 million ($210 million, subject to adjustments and customary closing conditions. G-III will purchase the remaining stake of Karl Lagerfeld in cash, subject to certain adjustments and customary closing conditions. G-III currently owns 19 per cent of the brand and, through this transaction, will become the sole owner of the brand.

The acquisition includes Karl Lagerfeld’s existing 10 per cent stake in its established joint venture in China. G-III believes that the acquisition enhances the Company’s overall economic value and is expected to drive improved long-term shareholder value.

The acquisition will add approximately $200 million in initial annual sales. Combined with G-III’s revenues of $175 million in its fiscal 2022 year ended January 31, 2022, from its existing Karl Lagerfeld business in North America, this acquisition will result in a business expected to generate an initial annual revenue base of approximately $375 million. G-III believes the acquisition will expand its global presence.

The transaction is expected to close in the second or third quarter of fiscal year 2023, subject to certain adjustments and customary closing conditions, including the receipt of required regulatory approvals.