Tharani's firm will continue with the denim offerings through June, after which Designer Licensing Holdings will take over the licensing agreement for men's and women's denim product categories. DLH will begin shipping product in the fall of 2007.

Both Groveman, who owns 40 percent of Blass, and Tharani, who owns the balance, will become shareholders of NexCen. The deal is expected to close next month.

The stock component of the cash and stock transaction is 28 percent, or $15.5 million, of the initial purchase price. The agreement provides for an earn-out arrangement, bringing the aggregate payment to about $70 million from $54.6 million, provided certain performance targets are reached for the period ending Dec. 31, 2007.

Groveman said the brand generated $600 million in worldwide sales at retail last year. Sales for 2006 are comparable to last year's figures.

Allan Ellinger, senior managing partner of MMG, which represented the Blass entities, said: "Bill Blass is an iconic American designer brand. More so than most of its peers, Bill Blass has stood the test of time and has remained relevant to today's customer. This transaction should help establish NexCen as one of the premier brand managers in the fashion industry while simultaneously preserving and expanding the Blass brand globally.

Bill Blass designer Michael Vollbracht, who had worked with the namesake designer for two years and with Groveman for five years, echoed Groveman's opinion that D'Loren's firm was the one to help Bill Blass grow globally.

"I keep thinking I'm the lucky man," Vollbracht said. "I've watched Bill Blass, and this is serendipitous to be a middle-aged man guiding Blass to a global level. Bill Blass taught me many years ago to go out and meet the customer. I know this customer. I know, hopefully, her taste level. I am thrilled to be part of the ride."

Although the Blass brand has it roots in America, Vollbracht's goal is to push its presence further into China and Europe.

The perception of Bill Blass is that it now appeals to a wider age group, rather than mostly to women in their 50s. Last year, First Lady Laura Bush wore a long-sleeved, yellow and orange floral chiffon dress to an official dinner hosted by the President for Indian Prime Minister Manmohan Singh and his wife, Gursharan Kaur. More recently, actress Angelina Jolie graced the cover of Vogue wearing Blass.

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