PVH Corp. has become a minority shareholder in the parent company of the Karl Lagerfeld brand.
Terms of the deal were not disclosed, but the investment gives PVH the right of first offer to license the brand in North America. Until now licensing for the brand had been primarily focused in Europe and Asia.
Karl Lagerfeld was part of the Tommy Hilfiger Group until PVH acquired it in 2010, at which time it was spun off to the group’s former shareholders. Other investors in Karl Lagerfeld include Apax Funds, the Chou Group, Mr. Tommy Hilfiger and Fred Gehring, chief executive officer of Tommy Hilfiger.
“We are excited to have PVH as a shareholder. We have ambitious plans for the business and have embarked on an aggressive growth strategy, opening a new store every three weeks over the last six months,” says Pier Paolo Righi, president, Karl Lagerfeld. “We believe PVH’s strong track record in supporting the growth opportunity of global designer lifestyle brands will be a big asset.”
Other lifestyle brands in PVH’s portfolio include Tommy Hilfiger, Calvin Klein, Izod, Kenneth Cole Reaction, Michael Michael Kors, Donald J. Trump Signature Collection and John Varvatos.