The fashion brand owners of Karl Lagerfeld have sold the majority stake to G-lll Apparel Group Ltd. for 200 million euros ($210 Million) paying in cash. G-lll purchased 81% of Karl Lagerfeld’s brand from a group of private and public investors headed by Fred Gehring of Amlon Capital, in addition to the 19% stake brought in 2016 while forming a North American joint venture in 2015. The apparel group also owns Donna Karen.
The buyers anticipate retail sales of the brand could reach over $2 billion. Hun Kim (former Tommy Hilfiger designer) is now head of design, along with Carine Roitfeld and Amber Valletta to create collections. Pricing is considered “Affordable Luxury” with a mid-tier price point.
Included in the deal G-lll will also acquire the 10% stake in it’s China joint venture with global expansion and ramped up licensing deals.