Luxury concern LVMH acquired Rimowa, suitcase manufacturer, for 640 million euro. It is also the very first German company in LVMH's portfolio.
LVMH will get 80 % of the company's shares thanks to a deal with Dieter Morszeck, grandson of Rimowa's founder. He will still lead the company, but will be backed by Alexandre Arnault, appointed by LVMH.
Rimowa, founded in 1898, sells suitcases which often cost more than 350 euro, but despite its lofty prices, the company's growth over the past few years has been very impressive and much higher than the branch's 5 % average. Turnover wise, it reaches about 400 million euro.
Thanks to the acquisition, LVMH strengthens its position in this particular market, dominated by Samsonite. LVMH is second with 7 % of the market, but Samsonite is nigh untouchable with 17 %.