LVMH buys 80% of German luggage group Rimowa
Rimowa says in a statement, "Dieter Morszeck, grandson of the founder of RIMOWA, has chosen to partner with the LVMH Group with a view to preserving the spirit of excellence and the long-term vision that have inspired his family and the company's employees for over a century. Under the terms of the agreement, Dieter Morszeck will sell a majority stake to the LVMH Group while continuing to hold equity in the business and maintaining his leadership functions. RIMOWA will then become the first German Maison of the LVMH Group. Upon completion of the transaction, Alexandre Arnault will be appointed co-CEO of RIMOWA." The transaction, subject to the approval of the competition authorities, relates to 80% of the shares for a value of EUR640M and is due to complete in January 2017. RIMOWA revenue for 2016 are expected to exceed EUR400M.