CEO Bernard Arnault has just rocked the luxury market this morning announcing that his family will be buying the 26% needed to control Christian Dior. The $13 Billion dollar deal will bring Dior under the umbrella of LVMH group.
LVMH group is one of the largest luxury investment groups in the world, and it has brands underneath its control including; Moët & Chandon, Hennessey, Louis Vuitton, Hublot, Marc Jacobs, Sephora, Givenchy, Dom Pérignon, and Céline. Clearly, the group is no stranger to handling such a prestigious fashion house and bringing it into their extensive family.
In a statement released by LVMH, Arnault stated that the acquisition would “simplify [business] structures” within Dior and LVMH. The Arnault family have undoubtedly pleased the other shareholders of LVMH and Dior with this new business venture. It was also stated in the press release that the deal would “strengthen the company’s already vast and very successful fashion and leather goods division” (LVMH).
Mr. Arnault seemed to be delighted with the acquisition and ready to welcome LVMH’s new addition.
“This project represents an important milestone for the Group. The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH’s Fashion & Leather Goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide. They illustrate the commitment of my family group and emphasize its confidence in the long-term perspectives of LVMH and its brands. I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide.” -Bernard Arnault
According to CNN Money, shares in both companies have already increased in trading in Paris since the announcement. As we reported earlier this week, the famous shoe brand Jimmy Choo has just announced that it is also up for sale. Could this house also potentially become part of the LVMH family? Only time will tell as fashion shifts on its head once again.