LVMH to Gain Control of Dior With US$13 Billion Arnault Deal


Image: LVMH

LVMH CEO Bernard Arnault has newly gained control over Christian Dior for approximately US$13.2 billion in one of his biggest transactions yet, according to Arnault Family Group, Christian Dior and LVMH in a joint press statement.

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The two-part strategic transaction marks the pinnacle of the French multinational luxury goods conglomerate, currently the largest luxury group in the world. The deal includes offers by LVMH to buy out Christian Dior’s minority investors for approximately US$187.47 a share. About 0.192 Hermès shares are offered for every Dior share. Each Christian Dior share is valued by the public offer to be worth US$283.50. The move serves to simplify a complicated ownership structure and would be completed by two secondary offers.

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The Arnault family also plans to strengthen LVMH’s division for Fashion & Leather Goods with the acquisition of Christian Dior Couture from Christian Dior for an enterprise value of US$7.09 billion.

The French billionaire, whose current net worth is estimated at US$46.3 billion, originally took control of Louis Vuitton and Dior in the 1980s, before adding a collection of fashion brands to its label, including Bulgari, Givenchy and Fendi. More recently, LVMH acquired suitcase maker Rimowa for US$716 million after purchasing a 80 percent state from Dieter Morszeck.

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