Norton Rose Fulbright is advising G-III Apparel Group Ltd. in its acquisition of Donna Karan International Inc., from LVMH Moët Hennessy Louis Vuitton SE in a deal with an enterprise value of US$650 million.
This is just the second time LVMH has sold one of its blue chip fashion brands. The Paris-headquartered LVMH – which owns Bulgari, Dior, Fendi, Givenchy, Moët & Chandon, Sephora and Tag Heuer, among other brands – sold Christian Lacroix in 2005.
The Norton Rose Fulbright corporate, M&A and securities team was led by Neil Gold and Manny Rivera with support from Sal Favuzza while Douglas Danzig and Jarret Stephens advised on real estate issues.
Sheldon Elefant, James Dreyfus and Alan Aronson provided support on tax and benefits issues. Neil Sparber assisted on employment and labor matters and Dan Wellington counseled on antitrust issues. Linda Merritt and Sue Ross provided IP support while Felice Galant advised on litigation matters.
According to the global law firm, LVMH and G-III have entered into a stock purchase agreement with respect to this transaction.
The deal is expected to close in late 2016 or early 2017.
G-III, a Nasdaq-listed company which owns brands such as Vilebrequin and G.H. Bass and holding fashion licenses under Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, has also bared its plan to finance the acquisition.
The firm plans to use US$75 million of newly issued G-III common stock to LVMH and a US$75 million six and a half year seller note to finance the deal.
It also has financing commitments from Barclays and JPMorgan Chase Bank for a US$525 million asset-based lending credit facility and a US$450 million, six-year term loan.