LVMH goes shopping in Germany. The luxury group that owns, among others, the brand Louis Vuittonhas reached an agreement to take over 80% of the German group Rimowa, active in the production of high-tech luggage, for a figure of around 640 million euros. This is the first acquisition in Germany for the French conglomerate. For the closing, expected by next January, we will have to wait for the go-ahead from the antitrust authorities.
The operation follows the analogous one performed by Samsonite, which bought fellow luggage brand Tumi for $1,8 billion, and delisting the only other major upscale brand in the industry.
The stake taken over by LVMH is the one in the hands of Dieter Morszeck, grandson of the founder of Rimowa, who will keep a shareholding and operating powers. Alongside him, in the role of co-Ad, there will be Alexandre Arnault, son of the number one of the French group Bernard Arnault.
Rimowa, known for having made the first aluminum suitcase for airplanes in 1937, should close 2016 with revenues of 400 million euros. LVMH's transaction has been positively received at the Paris stock exchangei, where the group stock gains 2,4%.
