LVMH has bagged German high-end luggage maker Rimowa in a $716 million deal. Photo: Bloomberg News
French luxury-goods giant agreed to pay $716 million for 80% stake in firm
PARIS?French luxury-goods firm LVMH Moët Hennessy Louis Vuitton Tuesday purchased a controlling stake in luggage maker Rimowa, its first shopping trip across the Rhine to buy a German company.
LVMH said it has agreed to pay 640 million euros ($716 million) for an 80% stake in Rimowa, which is based in Cologne. It aims to close the acquisition in January 2017.
Rimowa, which makes aluminum and composite suitcases that sell for several hundred euros a piece, is expected to have revenue this year of more than ?400 million, LVMH said.
An undated photograph of actress Diane Kruger, left, with a piece of red Rimowa luggage Photo: All Access Photo/Splash News The move extends LVMH?s strategy of expanding by acquiring high-end brands. After a rare retreat this summer with the sale of Donna Karan International Inc. for $650 million, the French firm appears to be back on the hunt.
Rimowa would also be the first German brand to join LVMH?s stable of companies, said Bernard Arnault, the French billionaire who controls LVMH. The French firm holds dozens of brands, including champagne-maker Don Perignon, and fashion houses Louis Vuitton and Marc Jacobs.
The acquisition marks the second major recent acquisition in the high-end luggage sector, after Samsonite International SA bought Tumi Holdings Inc. in March.
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