French luxury group LVMH has acquired a majority in Loro Piana, an Italian fashion company specialised in exclusive fabrics such as cashmere, merino and vicuña.
Coats starting from 14,000 euro
The French luxury company of billionaire Bernard Arnault is paying two billion euro for 80 percent of the shares in one of the most exclusive Italian clothing producers. The remaining 20% will stay with Sergio and Pier Luigi Loro Piana, the sixth generation of the family that is at the helm of the company and that is also where they will remain.
Loro Piana is one of Europe’s most specialised processors of cashmere from Mongolia, merino from Australia and vicuña from the Andes. Those exclusive fabrics get used in equally exclusive pieces of clothing that are definitely not for everyone: a coat of Loro Piana can easily cost you 14,000 euro.
Despite – or maybe because of – that focus on luxury Loro Piana has been on the rise for years. The company saw its sales rise by 13% to 630 million euro and if it is up to the brothers Sergio and Pier Luigi, the company will hit the target of 700 million euro this year. That would mean another rise of 10 percent.
“Only with Arnault”
Therefore it is no wonder the French king of luxury has set his mind on the Italian label and its interesting contacts and experience. In an interview with the French paper Le Figaro, the brothers Loro Piana say they “only wanted to negotiate with Bernard Arnault”: “We know his capacity to retain the identity of brands and still have them evolve. Remember Dior, Guerlain, Fendi…”
At the stock market the takeover was greeted with applause: LVMH was the strongest climber of the day at the CAC40.