Feb 12, 2019 | By Sandra Halliday
Big data meets consumer insights. Experience WGSN.
While there are many out there who already assumed that Dior was part of the LVMH luxury family, today’s breaking news should clear everything out.
French luxury goods giant LVMH has announced that it will take full control of Christian Dior Couture, in a transaction that values the French fashion house at €6bn ($6.5bn).
The deal would simplify LVMH‘s complex corporate relationship with Christian Dior and the Arnault family, including billionaire businessman Bernard Arnault, LVMH‘s founder and chief executive. The family owns 74.1% of Christian Dior, which in turn owns a controlling stake in LVMH.
Taking full control of Christian Dior will harness the “high growth potential” of “one of the world’s most iconic brands,” LVMH said, as its shares rose 4.4% in mid-morning trade Tuesday. Arnault also said the deal was an “important milestone”.
That would streamline the current shareholder structure and help unlock synergies, LVMH finance chief Jean-Jacques Guiony told a telephone news conference.
“It will allow for the regrouping of Christian Dior Couture and Parfums Christian Diorbrands,” a statement noted, adding: “On the strength of its history and favorable prospects, Christian Dior Couture will be a source of growth for LVMH,” it said.
“The development of Christian Dior Couture will be notably supported over the coming years by a new creative momentum and significant investments already completed, notably in America, China and Japan.”
Under the deal, the Arnault family is offering to buy the 25.9% of Christian Dior shares it doesn’t own, valuing that stake at €12bn, or €260 a share.
LVMH will then buy Christian Dior Couture, the fashion subsidiary of Christian Dior, for €6bn, the company said.
“The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH‘s Fashion and Leather Goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide,” Bernard Arnault said in a statement.
Know what’s next. Become a WGSN member today to benefit from our daily trend intelligence, retail analytics, consumer insights and bespoke consultancy services.