LVMH has agreed to sell Marc Jacobs to a joint venture between WHP Global and G-III Apparel Group, ending the luxury giant’s nearly three-decade ownership of the US fashion brand.

The deal will see WHP and G-III form a 50-50 joint venture to own Marc Jacobs’ intellectual property, with the companies set to raise up to $850m to fund the acquisition.

Financial terms were not disclosed, although a regulatory filing showed WHP and G-III would each contribute up to $425m.

The transaction is expected to complete before the end of the year.

LVMH acquired a majority stake in Marc Jacobs in 1997, the same year the designer was appointed as Louis Vuitton’s first creative director.

Jacobs, who founded his namesake label in 1984, will remain creative director following the sale and continue to oversee the brand’s creative direction and runway collections.

In a post on Instagram, Jacobs said: “I am forever grateful to Bernard Arnault for his support, belief and trust in me over the last 30 years.”

WHP said Marc Jacobs would become a core part of its premium fashion portfolio, which already includes Vera Wang, rag & bone and G-Star.

The acquisition is expected to take WHP’s global retail sales above $9.5bn.

Under the deal, G-III will acquire and manage the Marc Jacobs brand globally, while WHP will oversee licensing.

G-III, which owns brands including Karl Lagerfeld and DKNY, said it would fund its investment using cash and its revolving credit facility.

The sale comes as LVMH looks to sharpen its focus on profitability amid a tougher trading backdrop for the luxury sector.

The group said last month that conflict in the Middle East had knocked at least 1 per cent off sales in its latest quarter, as lower Gulf spending and reduced tourism in Europe weighed on performance.

Similar moves have included Adidas’ sale of Reebok to Authentic Brands Group in 2021.

Supply chain consultant Brittain Ladd said the transaction reflected a new approach to brand ownership, based on owning intellectual property, expanding licensing and keeping operations lean.

Marc Jacobs’ time under LVMH helped shape both the brand and wider luxury fashion market.

During his tenure at Louis Vuitton, Jacobs introduced ready-to-wear collections and high-profile artist collaborations, including partnerships with Richard Prince and Takashi Murakami, helping blur the lines between fashion, art and pop culture.

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