LVMH in Talks to Sell Marc Jacobs
The luxury giant has been holding talks with the owner of Reebok, among others
- LVMH is in talks to sell the Marc Jacobs fashion brand for around $1 billion.
- Authentic, Bluestar Alliance and WHP Global are among the companies interested in acquiring Marc Jacobs.
- LVMH is selling Marc Jacobs after trying to revive the brand by reducing its product offerings.
LVMH MC 3.92%increase; green up pointing triangle Moët Hennessy Louis Vuitton is in discussions to sell fashion brand Marc Jacobs in a deal that could fetch around $1 billion, according to people familiar with the matter.
The details
The luxury giant has been discussing deals with multiple parties including Reebok owner Authentic, the people said. Brookstone owner Bluestar Alliance and Vera Wang parent WHP Global are also among the suitors.
A deal could come together soon, assuming talks don’t fall apart, the people said.
LVMH is widely known as an acquirer of assets to fuel growth, such as its big deal for jeweler Tiffany & Co. in 2021. But the company has proven to be a willing seller of brands if they no longer fit its strategy. In 2016, it agreed to unload Donna Karan and DKNY for an enterprise value of $650 million. More recently, LVMH sold its interests in Off-White and Stella McCartney.
“We will not keep brands if we believe they are not a good add-on, or we are not the right operator to operate them,” LVMH Chief Financial Officer Cécile Cabanis said during the company’s earnings investor call on Thursday.
The Marc Jacobs fashion brand was founded in 1984 by the eponymous fashion designer, alongside his business partner Robert Duffy. The label’s most popular products include its tote bags and Marc Jacobs Daisy perfume.
The context
A sale of Marc Jacobs would come as LVMH has been trying to resurrect the brand, in part by trimming the number of items it offers to customers.
The conglomerate, steered by Bernard Arnault, is home to dozens of high-end labels including Dior, Celine, Fendi and Hennessy cognac.
There has been a flurry of dealmaking activity in the luxury retail space. Prada in April said it would acquire Versace from fashion conglomerate Capri Holdings for almost $1.4 billion.