LVMH Moet Hennessy Louis Vuitton SA agreed to pay US$2.57 billion or Eur2 billion for 80% of Loro Piana SpA.
The move of LVMH Moet Hennessy Louis Vuitton SA adds the high quality textile producer-Italian cashmere clothier to its burgeoning luxury brands portfolio.
The transaction valued the Quarona, Italy-based Loro Piana at Eur2.7 billion. The family owners of Loro Piana SpA retain a 20% stake in the company after the sale.
Analyst at Exane BNP Paribas in London, Luca Solca said, "Loro Piana is quintessentially high-end while a lot of LVMH is mass luxury."
With the purchase, LVMH acquired a trophy asset and is set get growth opportunities through the cashmere clothier without straining its balance sheet. Loro Piana brings LVMH expertise in textiles, starting with sourcing to manufacturing.
Bernard Arnault, LVMH Chief Executive Officer said, "I am convinced that our group will prove a good home in realizing the significant future potential of Loro Piana."
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