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07/2016

DONNA KARAN acquired by G-III APPAREL GROUP

UNITED STATES Luxury Goods / Fashion & Leather Goods EV 500M - 1.5b USD

Context

G-III Apparel Group acquired 100% of Donna Karan International from LVMH in a highly significant and transformational corporate transaction. The deal was structured via a definitive stock purchase agreement that combined cash, high-leverage institutional debt facilities, and vendor financing mechanisms. To execute the acquisition, G-III secured major financing commitments from Barclays and JPMorgan Chase. The purchase price was funded via a multifaceted capital structure consisting of senior bank debt, a $75 million seller’s note (vendor loan) extended by LVMH over a 6.5-year term, and $75 million in newly issued G-III common stock delivered directly to the French conglomerate. The transaction immediately transitioned the American fashion house into G-III's industrialized distribution matrix, allowing LVMH to successfully offload a non-core asset while granting G-III a critical, high-equity global "power brand" to achieve unmatched operational scale, diversify its product portfolio, and capture long-term retail volume expansion across the premium consumer market.

DONNA KARAN, which reported an EBITDA margin of LOGIN in 2016, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Retail & Consumer sector (11.0x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Donna Karan International (DKI) is an iconic American global fashion house comprising the prestige Donna Karan and highly successful contemporary DKNY lifestyle brands. Founded in New York City in 1984 by designer Donna Karan, the company redefined modern urban womenswear through its revolutionary "Seven Easy Pieces" philosophy, combining everyday corporate versatility with upscale New York sophistication. Its business model relies on a balanced omni-channel platform spanning retail, wholesale, and premium licensing divisions. The organization operates a network of approximately 50 company-operated retail storefronts, generating roughly one-third of its volumes directly, with the remaining revenue derived from prominent department stores and digital channels. Strategically, the firm acts as a dominant player in the global "accessible luxury" and contemporary fashion segments, commanding substantial consumer equity worldwide.

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EV / EBITDA

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 500M - 1.5b USD

Revenue range: 250M - 500M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of DONNA KARAN by G-III APPAREL GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: donna karan

Acquirer: g-iii apparel group