American holding company PVH has acquired a minority stake in Karl Lagerfeld fashion house, as the eponymousbrand has its sights set on global expansion.
"We are excited to have PVH as a shareholder. We have ambitious plans for the business and have embarked on an aggressive growth strategy, opening a new store every three weeks over the last six months," commented Pier Paolo Righi, president of Karl Lagerfeld in a press release.
Karl Lagerfeld saw the opening of its much awaited London flagship last month and previously announced plans to open 100 new stores over the next five years, with 40 stores opening in China alone.
PVH investment will be used to help the fashion house achieve its expansion plans. "We believe PVH's strong track record in supporting the growth opportunity of global designer lifestyle brands will be a big asset," added Righi.
Terms of the deal were not disclosed, however the agreement will see PVH benefiting from the growth of the brand, as the holding company will be given the right of first offer to franchise Karl Lagerfeld for North America. Until now, the brand had focused on expanding within Europe and Asia.
Karl Lagerfeld consists of three main lines: Karl, Karl Lagerfeld Paris and Lagerfeld. The brand was previously part of the Tommy Hilfiger Group, until PVH acquired the Group in 2010 when it was obtained by the Group's former shareholders.
Other investors in Karl Lagerfeld, including Apax Funds, the Chou Group, Mr. Tommy Hilfiger and Fred Gehring, CEO of Tommy Hilfiger.