Liz Claiborne is taking a fifty percent stake in design house Narciso Rodriguez. The deal will be announced on Monday. Together, Claiborne and Rodriguez will create a new company with which they will build a global brand. Rodriguez will be creative director of the new entity.

"Narciso's strong following and high recognition level position his business well for considerable organic growth," William L. McComb, Claiborne's chief executive, said in a statement. "In addition to the expansion of the existing collection business, we feel there are abundant brand extension opportunities in non-apparel and licensing categories, as well as increased international distribution. Further, we see potential in the direct-to-consumer channel on a worldwide basis."

Rodriguez, who was thought to have been looking for an investor for his business, said: " Col laborating with Liz Claiborne will enable me to focus on my work and all its possibilities. Bill McComb and his team have a clear understanding of my vision and are committed to help me realize my dream."

Rodriguez first shot to fame when he designed the wedding dress for Carolyn Bessette Kennedy. The Parsons alumnus had worked for Anne Klein, Calvin Klein, Cerruti and Loewe. In 1997, he founded his own signature label and gained a celebrity following with his clean, linear designs. He won the CFDA Womenswear Designer of the Year award for two consecutive years, in 2002 and 2003. In 2005, Rodriguez started a men's line. His collections are sold at high-end stores such as Barneys New York, Bergorf Goodman and Harvey Nichols. Despite his successes in the US , however, the designer never managed the same abroad. His president and chief executive, former Giorgio Armani executive Roberto Pesaro, left the firm after only 10 months and he was forced to close down his flagship store in Milan in February.

The addition of Rodriguez to the stable of Liz Claiborne brands signifies a departure from its usual mid-priced brands, such as Juicy Couture, Ellen Tracy and Kate Spade.