LVMH Takes Control of Loro Piana for $2.6 Billion

LVMH Moët Hennessy Louis Vuitton purchased an 80 percent stake in Loro Piana, costing LVMH €2 billion ($2.56 billion) and valuing the company at €2.7 billion ($3.48 billion).  Loro Piana, the Italian luxury clothing company best known for its luxury cashmere and wool goods where a cashmere cardigan will set one back $1,250 and cashmere lined rain coat, almost $11,000, has weathered the recession well and is expected to have sales of over €700 million this year.   LVMH CFO, Jean-Jacques Guiony said during a conference call, "We have a big respect for the brand and have been looking at [Loro Piana] for many, many years." 

Loro Piana has been family run for generations since 1924 when the company was officially founded although the company has been in existences as early as 1812.  It is one of many family owned Italian luxury companies that have chosen to sell.  In recent years, Bulgari and Brioni has also sold to luxury conglomerates.  Hermès has been resisting being taken over by LVMH after LVMH secretly amassed a minority stake in the company.

The great-great-grandchildren of Giacomo Loro Pianaco, who founded the company, Sergio and Pier Luigi Loro Piana will continue to be co-CEO and manage the company day-to-day as the family retains a 20 percent stake.  The brothers said, “LVMH has proved that it respects and nurtures family businesses and is most likely to respect the values and traditions."

Read more:

NY Times: LVMH to Buy Control of Loro Piana for $2.6 Billion

WSJ: LVMH Buys Control of Loro Piana