Loro Piana passes definitively into French hands. lvmh announced the closing of the acquisition of 80% of the Italian company, a luxury brand in the cashmere sector.
Following the operation – continues the note from the French giant –, the president of Loro Piana will become Antoine Arnault, son of Bernard, historic patron of Lvmh.
The brothers Sergio and Pier Luigi Loro Piana will remain vice presidents, representing their family, which still holds 20% of the company's capital.
The operation – announced for the first time last July – is worth about two billion euros. The French giant, which already controls Bulgari and Fendi, this year also took over the historic Cova pastry shop in Milan, beating the competition from Prada.
The contract includes a put option on the remaining 20% for a three-year term and its exercise will depend on certain parameters such as the EBITDA trend. In 2013 Loro Piana should achieve sales of 700 million euros and profits before taxes, interest and depreciation, equal to more than 20% of sales.
