LVMH to sell Marc Jacobs to WHP, G-III

LVMH agreed to sell the Marc Jacobs fashion label to a venture between WHP Global and G-III Apparel Group, marking a rare divestment for the world's largest luxury group as it adjusts to softer demand.

Financial terms weren't disclosed, though G-III said in a filing that it plans to invest up to $425 million in the 50-50 venture. Jacobs, the brand's founder, will continue as creative director for the affordable luxury label, the companies said Thursday. Marc Jacobs adds to WHP Global's growing roster of businesseswhich include Vera Wang and Rag & Bone.

The acquisition will push the brand management group's annual revenue to more than $9.5 billion.