LVMH Buys 80% Controlling Stake In Loro Piana.

LVMH seems to be on a mission to own every small luxury brand that exists, and a good few of the large ones also, with its acquisitions list in the last year alone includes Bulgari, Moynat and R.M. Williams, although many people believe Berluti was acquired in the last year, actually LVMH have owned it since 2003, but only decided to do something with it a year ago.  Now, they have expanded their portfolio yet further, with the acquisition of Loro Piana, everyones favourite cashmere brand.

In a move set to ensure at the very least Louis Vuitton secure the absolute best source of cashmere the world has to offer, they have purchased an 80% controlling stake in Loro Piana, with the Loro Pian brothers keeping only 20%, this deal cost LVMH a cool $2.6 billion.

LVMH have stated they have an interest in expanding Loro Piana's leather goods range, which may come as welcome news to any consumers of Loro Piana, as their current range in this area is somewhat limited at best.

LVMH have made many typically complementary statements at this stage, such as for example comparing Loro Piana to its deadly rival Hermes, saying it is in many ways "a smaller Hermes" and "one of the most profitable and exclusive brands on the market".

The purchase is a smart move on LVMH's part and Loro Piana's sales are up already this year at €631 million above last years €600 million, and are projected to top €700 million this year, so even if LVMH do nothing, they will still succeed in being quids in.  As ardent fans of everything Loro Piana do (almost) we sincerely hope this new move does not negatively affect the brand we have come to love.