Luxury = LVMH

127 year old Italian jewelry house, Bulgari is the latest addition to the LVMH empire.
In what is slated as their biggest takeover in a decade, LVMH bought the family’s controlling stake for $5.2 billion. With Bernad Arnault at its helm LVMH, which sells everything from Louis Vuitton bags to Dom Perignon champagne and Royal Van Lent yachts, has emerged as the world’s largest luxury goods house, making Arnault the 7th richest man in the world.
LVMH, which stands for Louis Vuitton Moet Hennessy and is synonymous with luxury, wasn’t always the global giant it is now. In 1984, Bernard Arnault acquired Boussac, a sinking textile company which also owned Christian Dior. He sold all of the company’s assets and retained Dior and Le Bon Marche, a department store.
LVMH was founded in 1987 from the merger of Moet Hennessy, whose CEO was Alain Chevalier and Louis Vuitton, whose president was Henry Recamier. It is said that Arnault exploited a growing conflict between these two owners to succeed to the LVMH throne. Since then, the company has completed more than two dozen acquisitions in the past decade as Arnault forged a luxury goods maker now valued at $77 billion.

Keeping up their track record of partnering with innovative brands such as Benefit, Make Up For Ever, and Fresh, the group has recently acquired Ole Henriksen, a renowned skincare brand. In 2007 the group acquired a 20% stake in Hidesign, India’s premier leather goods company.

Some of the gems that make up the LVMH crown are haute-couture houses Christian Dior and Givenchy, as well as luxury champagne grandes marques such as Dom Pérignon and Krug, and fashion labels Donna Karan, Céline and Marc Jacobs. The other brands include Fendi, Hennessy, Pucci, Sephora and Tag Heuer.

LVMH and its owner Arnault have been in the news recently for their relentless pursuit of acquiring a controlling stake in rival luxury goods maker Hermes of the Kelly and Birkin bag fame. Though LVMH has built a 20.2% stake since October, Hermes is supposedly unimpressed.

Well, the swords have been drawn and Arnault has said that he is willing to wait this one out…so will Hermes succumb to the pressure? This luxe batle should be worth watching.