G-III Apparel Group, Ltd. Announces Joint Venture for DKNY and Donna Karan in China
August 23 2017 - 4:05PM
Business Wire
G-III Apparel Group, Ltd. (NASDAQ:GIII), a leading manufacturer
and distributor of apparel and accessories under licensed brands,
owned brands and private label brands, announced that it was
partnering with Fred Gehring’s investment fund, Amlon Capital BV
(“Amlon”), to produce and market women’s and men’s apparel and
accessories pursuant to a long term license for DKNY and Donna
Karan in the People’s Republic of China, including Macau, Hong Kong
and Taiwan.
The joint venture, of which G-III will own 49% and Amlon the
balance, will be funded with $25 million of equity that will be
used to strengthen the DKNY and Donna Karan brands and accelerate
growth of the business in the region. As of January 1, 2018, this
joint venture will be the exclusive seller of the brands in the
territory.
Fred Gehring, former Tommy Hilfiger Chairman and Chief Executive
Officer and former PVH Vice Chairman, will be Chairman of the joint
venture and Steve Shen, former Chief Executive Officer of Tommy
Hilfiger China, will be the Chief Executive Officer of the joint
venture.
Morris Goldfarb, Chairman and Chief Executive Officer of G-III,
said, “In our industry, Fred has no peer and his tenure at Tommy
Hilfiger and PVH is a testament to that. He is a great partner with
us on the Karl Lagerfeld brand. We are excited to extend this
strong partnership and work with him and his team on growing the
DKNY and Donna Karan brands in China. Steve’s track record in China
is outstanding. We are looking forward to collaborating with these
accomplished retail industry veterans to aggressively grow our
business in the greater China region, which is a major strategic
opportunity for us.”
Fred Gehring commented, “DKNY and Donna Karan are truly global
iconic fashion designer brands. There are only a few brands with
similar authenticity and standing. I am excited to extend my
partnership with G-III to invest and grow the business with these
brands in China. My long-term business partner Steve Shen, who
successfully built Esprit and then Tommy Hilfiger in China, will
lead the business for us. He did an amazing job for Esprit and
Tommy Hilfiger and I am confident that he will be equally
successful with the DKNY and Donna Karan brands.”
Steve Shen added, “There is huge growth potential for the DKNY
and Donna Karan brands in China. I look forward to working with
Fred and his partners at Amlon again and to be joining forces with
Morris and G-III on this exciting opportunity.”
About G-III Apparel Group,
Ltd.
G-III is a leading manufacturer and distributor of apparel and
accessories under licensed brands, owned brands and private label
brands. G-III’s owned brands include Donna Karan, DKNY,
Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and
Jessica Howard. G-III has fashion licenses under the Calvin Klein,
Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan, Guess?,
Vince Camuto, Ivanka Trump, Kensie, Levi's and Dockers brands.
Through its team sports business, G-III has licenses with the
National Football League, National Basketball Association, Major
League Baseball, National Hockey League, Hands High, Touch by
Alyssa Milano and more than 100 U.S. colleges and universities.
G-III also operates retail stores under the DKNY, Wilsons Leather,
G. H. Bass, Vilebrequin, Calvin Klein Performance and Karl
Lagerfeld Paris names.
Statements concerning G-III's business outlook or future
economic performance, anticipated revenues, expenses or other
financial items; product introductions and plans and objectives
related thereto; and statements concerning assumptions made or
expectations as to any future events, conditions, performance or
other matters are "forward-looking statements" as that term is
defined under the Federal Securities laws. Forward-looking
statements are subject to risks, uncertainties and factors which
include, but are not limited to, reliance on licensed product,
reliance on foreign manufacturers, risks of doing business abroad,
the current economic and credit environment, the nature of the
apparel industry, including changing customer demand and tastes,
customer concentration, seasonality, risks of operating a retail
business, customer acceptance of new products, the impact of
competitive products and pricing, dependence on existing
management, possible disruption from acquisitions, risks relating
to G-III’s acquisition of Donna Karan International Inc. and
general economic conditions, as well as other risks detailed in
G-III's filings with the Securities and Exchange Commission. G-III
assumes no obligation to update the information in this
release.
About Amlon Capital BV
Fred Gehring set up Amlon (www.amlon.com) in 2016 together with
partners from his time at Tommy Hilfiger and private equity firm
Apax Partners that took Tommy Hilfiger private in 2006. Amlon is a
private investment vehicle which invests in apparel and accessory
brands and already has stakes in Karl Lagerfeld, Denham Jeans and
kids wear brand Vingino.
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version on businesswire.com: http://www.businesswire.com/news/home/20170823005684/en/
Investor Relations:James Palczynski, 203-682-8229orG-III Apparel
Group, Ltd.Neal S. Nackman, 212-403-0500Chief Financial Officer
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