LVMH to Acquire Donna Karan

December 18, 2000

LVMH to Acquire Donna Karan

LVMH Moet Hennessy-Louis Vuitton, the luxury products group, has signed an agreement to acquire 100% of Gabrielle Studio Inc., the privately owned licenser of Donna Karan trademarks. LVMH also submitted a proposal to the board of directors of Donna Karan International to acquire the company for $8.50 per share in cash, which is a 74% premium over the closing price on Dec. 15. LVMH hopes to combine Donna Karan International and Gabrielle Studio and have Donna Karan continue as chief designer in the combined company.

"We see our acquisition of Donna Karan as great opportunities to further develop this wonderful brand name in an international context," says Myron Ullman, group managing director of LVMH. Donna Karan International will benefit from LVMH's experience in production and distribution as well as in finance, advertising and real estate. It will become part of the LVMH Fashion Group, which includes Louis Vuitton, Berluti, Christian Lacroix, Fendi and others.

Donna Karan International is one of the world's leading fashion houses. Led by Donna Karan, the company designs collections of women's and men's clothing along with sportswear, accessories and shoes under the brand names of Donna Karan New York, DKNY, DKNY Jeans and DKNY Active.

- by Julia M. Duncan