The LVMH Group has acquired a majority stake in German luggage and leather goods maker Rimowa.
The transaction, for 80% of Rimowa shares, is worth €640 million and is due to complete in January 2017. It is subject to the approval of competition authorities.
Dieter Morszeck, grandson of Rimowa founder Paul Morszeck, will continue to hold equity in the business and will maintain his leadership functions. Upon completion of the transaction, Alexandre Arnault will be appointed co-CEO of Rimowa.
Rimowa was founded in Cologne in 1898 and becomes the first German maison of the LVMH Group.
“My grandfather founded Rimowa more than a century ago and I joined the company 44 years ago,” said Dieter Morszeck. “By entrusting this family venture to the LVMH Group, we are guaranteeing a promising future to all Rimowa employees.
“Over the past two years I have had the opportunity to establish close ties with the Arnault family, and in particular with Alexandre. Alexandre and I have discussed at length the attractive development prospects available to us and the common values that we share. I am delighted that he is joining Rimowa and I have full confidence in his ability to accelerate the development of the business by my side.”
Alexandre Arnault commented: “Rimowa is a superb business which I have followed as a loyal customer for many years. Rimowa has revolutionised the luggage industry for over a century, its suitcases are renowned for their unique performance, quality and design. I am honoured to join Rimowa and to be working alongside Dieter.”
Bernard Arnault said: “Rimowa is a brand with a unique heritage. We share with Dieter Morszeck the same passion for innovation and a common desire to offer very high-quality products derived from a European tradition of craftsmanship. What’s more, it brings me great pleasure that Rimowa will be the first German house to join the LVMH Group.”
Morszeck has also created the Rimowa Dieter Morszeck Foundation to which a part of the sale proceeds will be donated. The foundation aims to support projects in scientific research, public health, education and humanitarian aid both in Germany and internationally.