LVMH finalizes its acquisition of Donna Karan

LVMH Moet Hennessy Louis Vuitton, the world's leading luxury products group, announced on the 2nd of April 2001 that it has signed a definitive agreement to acquire the American lifestyle company, Donna Karan International. This agreement follows LVMH's acquisition in January of Gabrielle Studio Inc. which owns the Donna Karan and DKNY brands and other brands used by DKI.

The offer price of DKI shares has increased to USD 10.75 from the initial level of USD 8.5. In conformance with previous agreements, the additional cost to LVMH will be financed by a corresponding reduction of the price of Gabrielle Studio. This means that the total acquisition price paid by LVMH for Gabrielle Studio and DKI remains unchanged.

Yves Carcelle, President of the LVMH Fashion Group, said: “This acquisition is an important strategic step for LVMH. We are pleased to have reached an agreement in a timely manner and after a constructive process with the Special Committee of DKI's Board of Directors. We look forward to closing the transaction and to moving forward with Ms. Karan and her team to help expand both the product line and geographic reach of this globally successful lifestyle brand.”