LVMH Moet-Hennessy Louis Vuitton to buy Donna Karan Int'l for 0.37 times revenue

Weekly Corporate Growth Report, Apr 9, 2001

The Deal: LVMH Moet-Hennessy Louis Vuitton has agreed to purchase Donna Karan International Inc. for $243 million. The acquisition is a sweetened bid on the French conglomerate's offer for the company in December of 2000. After news of the transaction was announced, shares of Donna Karan rose $1.43 to close at $10.41 and the New York Stock Exchange.

Discussions: Donna Karan International designs and sells men's and women's clothing, including suits, sportswear, accessories and shoes, under the Donna Karan New York and DKNY labels. Licensing partners include Estee Lauder, Fossil watches, Liz Claiborne, Phillips-Van Heusen, Esprit de Corp. and Sara Lee. Donna Karan sells to upscale department and specialty stores, and through its own retail stores. The company licenses third parties to run most of its international stores.

LVMH Moet-Hennessy Louis Vuitton is a maker of champagnes and wines under the Dom Perignon, Moet & Chandon and Veuve Clicquot labels; cognacs such as Hennessy and Hine; perfumes Christian Dior, Guerlain and Givenchy; cosmetics under the names Bliss, Hard Candy and BeneFit; fashion and leather goods such as Christian Lacroix, Givenchy, Kenzo and Louis Vuitton; and watches and jewelry like TAG Heuer, Ebel, Chaumet and Fred Joaillier.