FRANCE. French luxury goods group LVMH is to take full control of the Christian Dior brand in a deal worth US$13 billion (€12 billion).
The move aims to simplify business structure and will bring the whole Christian Dior brand, from fashion to fragrances, under one roof.
Part one of the transaction will see LVMH buy the Christian Dior Couture brand from Christian Dior for €6.5 billion. Part two consists of a mixed offer in which the Arnault family will offer to buy out minority investors in Christian Dior for €172 per share and 0.192 Hermès shares for each Christian Dior share, completed by two secondary offers of cash and Hermès shares.
LVMH CEO & Chairman Bernard Arnault said: “This project represents an important milestone for the group. The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH’s Fashion & Leather Goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide.
“They illustrate the commitment of my family group and emphasise its confidence in the long-term perspectives of LVMH and its brands. I am delighted to announce this project today and thus continue and reinforce the development of LVMH in France and worldwide.”
