Rewrites throughout, adds details and background

May 14 (Reuters) - French luxury group LVMH LVMH.PA has agreed to sell the Marc Jacobs brand in a deal that will put the U.S. fashion label under the joint ownership of brand management firm WHP Global and apparel company G-III Apparel Group GIII.O, the companies said on Thursday.

After buying the brand from LVMH, WHP Global will form a 50/50 joint venture with G-III to own Marc Jacobs' intellectual property. G-III will acquire and manage the brand's global operating business, while WHP will manage licensing operations.

Financial terms of LVMH's sale to WHP were not disclosed, but the companies said the deal was expected to close before the end of the year.

G-III said it would fund its about $500 million investment using cash on hand and borrowings under its revolving credit facility.

Founder Marc Jacobs will remain creative director at the brand after the deal closes, overseeing its vision, runway collections and fashion shows, according to WHP and LVMH's statement.

Founded in 1984 by Jacobs, the fashion brand is renowned for its eclectic, bold designs that blend high fashion with street style. In 1997, LVMH tapped Jacobs to lead the Louis Vuitton brand and acquired a stake in the designer's eponymous label.

Reuters had reported last year that the Bernard Arnault-led company had been holding talks with potential buyers including WHP Global and Reebok-owner Authentic Brands Group AUTH.N for the sale of Marc Jacobs.

WHP Global said Marc Jacobs would become a cornerstone of its premium fashion vertical, which already includes brands like Vera Wang, rag & bone and G-STAR.

The addition of Marc Jacobs would lift WHP Global's global retail sales to more than $9.5 billion, it said.