Jul 8, 2013
LVMH says buys control of Loro Piana
Jul 8, 2013
LVMH on Monday said it had acquired 80 percent of Italian luxury cashmere clothing brand Loro Piana for 2 billion euros ($2.57 billion), boosting the French group's presence in high-end handcrafted products popular with Asian buyers.
The deal gives Loro Piana an enterprise value of 2.7 billion euros, or more than 3.8 times the company's expected 2013 sales of 700 million euros.
The takeover is the latest in a series of large-scale Italian acquisitions by LVMH, highlighted by its purchase of Roman jeweller Bulgari for 3.7 billion euros in 2011 as well as leather goods maker Fendi in 2001 and fashion label Emilio Pucci in 2000.
LVMH, the world's top luxury group, said the Sergio and Pier Luigi Loro Piana family would retain 20 percent of the company as well as their management positions.
The company has enjoyed continued strong demand in China even as some other luxury brands such as Louis Vuitton, part of LVMH, have experienced slowdowns.
Loro Piana, whose fine cashmere coats sell for several thousand euros, makes earnings before interest, tax, depreciation and amortization (EBITDA) representing more than 20 percent of its turnover, LVMH said.
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