G-III Apparel acquires 19 percent stake in Karl Lagerfeld Group

German designer Karl Lagerfeld has welcomed a new investor for his eponymous fashion house, namely G-III Apparel Group.

The group, who acted as Lagerfeld’s joint-venture partner for his entry into the US, has acquired a 19 percent stake in Karl Lagerfeld Group through a capital increase, reported Women’s Wear Daily (WWD). The investment will reportedly be used to help increase the label’s global expansion into new terrorise and product categories, although the financial terms of the acquisition where not disclosed.

“We believe it is one of the most iconic designer brands in the world,” said Morris Goldfarb, chairman, president and chief executive officer of G-III to WWD. “We think we can contribute to the business in many ways, distribution in North America being a key component.” Although he declined to share further information on their stake, he did not rule out the possibility of increasing their stake in the company in the future.

Through the joint-venture agreement, which saw G-III introduce a new Karl Lagerfeld Paris range to the US last autumn, the group acquired a 49 percent interest in the company whilst becoming Lagerfeld’s first licensee. The agreement includes all consumer products and apparel from the group in the US and Canada. “The man and the brand are recognized throughout the world. Who doesn’t know the profile of Karl Lagerfeld?” said Goldfarb.