G-III Apparel Group Ltd. said it has completed the acquisition of Donna Karan International Inc.

DKI is the parent of the Donna Karan and DKNY brands. G-III said it funded the total purchase price of $650 million through a combination of cash, $75 million of newly issued shares of common stock to LVMH Moët Hennessy Louis Vuitton and a $125 million junior lien seller note, made up of $75 million with a six-and-a-half year maturity and $50 million with a seven-year maturity. The company said the cash component of the purchase price was paid from the proceeds of a $350 million six-year-senior secured term loan, and the balance from borrowings under a $650 million five-year senior secured asset based revolving credit facility and cash on hand.

Morris Goldfarb, chairman and chief executive officer of G-III, said, “Donna Karan International is a transformative addition to our global portfolio of iconic brands and enhances our position as a fashion leader. We believe there is a need for these brands in the market and that DKNY alone has the potential to generate $1 billion in annual sales.”

He said the company is working with its partners and through its strong licensing network to bring to market a “compelling lifestyle offering” that would restore the DKI brands to prominence.

Further, Goldfarb said, “We have always sought to build our business in a way that will provide us with long-term sustainable growth. DKI’s brands — DKNY, Donna Karan and DKNY Jeans — fit squarely with that strategy.”

G-III’s brand umbrella is composed of owned, licensed and private-label brands. Owned brands, in addition to the DKI brands, include Vilebrequin, Andrew Marc, Marc New York, G.H. Bass, Eliza J and Jessica Howard. Licensed fashion brands include Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Guess, Jones New York, Jessica Simpson, Vince Camuto, Ivanka Trump and Ellen Tracy, among others. The company also has a team sports business — such as National Football League, Major League Baseball, as well as more than 100 U.S. colleges and universities — that it create product for under license.

Goldfarb said, “Donna Karan is an excellent growth catalyst for our company and we are well positioned to continue to capitalize on the significant opportunities ahead.”

G-III is slated to report third-quarter results this afternoon after the markets close.