NEW YORK - The four initials of one of America's most trend-setting fashion houses are daubed in monochrome on the sides of Manhattan buildings and on billboards around the world.
But DKNY this week surrendered to another four-letter fashion combination, selling to LVMH.
The Paris-based luxury-goods group, owner of Luis Vuitton andMoet Hennessy, confirmed that it planned to buy the companies behind DKNY, Donna Karan International and the holder of its licences, Gabrielle Studios, in a deal worth about $600 million ($1397 million).
Owned by one of France's richest men, Bernard Arnault, LVMH has grown at an astonishing pace, acquiring stakes in 14 companies this year.
Mr Arnault is engaged in a ferocious court battle with his French arch-rival, Francois Pinault, for control of Italy's Gucci.
While both men seek to rule the world in luxury fashion sales, they are duelling simultaneously in the art sales sector. Among Mr Arnault's recent acquisitions is the Phillips auction house, which is fast catching up with Christie's and Sotheby's. Christies is owned by Mr Pinault.
Donna Karan, who founded her firm in 1984, indicated that she would retain "creative ownership" of her line of products, even after they had been folded into LVMH.
Her name appears on men's and women's clothing as well as cosmetics and eyewear.
In 1996, she took her company public, a move which saw its shares trade as high as $30. But after the company predicted lower-than-expected profits for next year, its shares slumped this month to a $4.25.
With the buyout, Ms Karan and her husband, Stephen Weiss, who co-founded the business, are unlikely to have personal financial problems. With the backing of LVMH, the Donna Karan brand is likely to become even more pervasive.
"The growth and development of the company has been my life's work," Ms Karan said in New York.
"As the world's leading luxury group, LVMH has the expertise, resources, global scale and vision to help realise the full potential of Donna Karan and DKNY."
