The Loro Piana family has chosen to sell a majority stake in their family business to the LVMH Group.
Loro Piana is more than just a renowned label, it embodies a family’s passion for the highest standards of craftsmanship and quality. With knowledge and experience gained over six generations, Loro Piana creates exceptional products and fabrics, especially in cashmere where Loro Piana is the leading specialist in the world.
The Loro Piana family began trading wool and fine textiles at the beginning of the 19th century and in April 1924 Pietro Loro Piana established the business in Qarona Sesia, Italy. His work is continued today by Sergio and Pier Luigi Loro Piana. Under their leadership, Loro Piana has become the world’s leading artisan in cashmere and the rarest wools and has developed a worldwide network of more than 130 exclusive boutiques where products are distributed under the Loro Piana name.
Loro Piana is globally renowned for its devotion to quality, innovation in textile products, unrivalled standards in design, in its search for new materials and for the quality of its craftsmanship.
Loro Piana uses the finest materials available in the world, such as baby cashmere ; it is also a specialist in Vicuna, a species of animal which Loro Piana has made a fundamental contribution to saving from extinction; and many other exceptional meterials, not least the lotus flower and the exceptionally fine wools from merinos. At each stage of sourcing and production, Loro Piana combines exceptional craftsmanship with the most advanced technology in the pursuit of quality.
Sergio and Pier Luigi Loro Piana commented: «The Loro Piana family is proud that our name is now associated with the LVMH Group. Under Bernard Arnault’s leadership, LVMH has proved that it respects and nurtures family businesses and is most likely to respect the values and traditions of our Maison, as well as our desire to provide our clientele with unparalleled quality. By joining LVMH, a group built around a unique set of other historic Maisons, Loro Piana will benefit from exceptional synergies while preserving its traditional heritage.
Bernard Arnault added: « Loro Piana is an exceptionally rare Maison, rare in the unique quality and craftsmanship in its products, not least in cashmere and fine textiles, but also in the unbroken heritage and careful family husbandry over six generations. I am very pleased that Sergio and Pier Luigi Loro Piana believe that our group is best able to ensure the future of the house of Loro Piana. Indeed we share the same values : family and craftsmanship allied to the tireless pursuit of quality, and I am convinced that our group will prove a good home in realising the significant future potential of Loro Piana. »
Sergio and Pier Luigi Loro Piana remain 20% shareholders and keep their functions at the leadership of the company.
The transaction, subject to approval by the competition authorities, covers 80% of the shares for an amount of EUR 2.0 billion (enterprise value of 100% equating to EUR2.7bn). Loro Piana is expected to achieve 2013 sales of EUR 700 million, with ebitda representing over 20% of sales.
LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Hennessy, Glenmorangie, Ardbeg, Vodka Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton, Wen Jun. Its Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Jewellery, a joint venture created with the world’s leading diamond group.
Loro Piana operates in the luxury products sector, making items of uncompromising quality and offering full lines of clothing, accessories and gifts which are all made in Italy with the best raw materials available in the world. Loro Piana’s discerning clientele are able to access our products through a worldwide network of direct sales outlets located in the most prestigious streets, as well as its website, www.loropiana.com and carefully selected network of multi-brand retailers. Loro Piana's heritage and experience dates back to six generations in the production of high-quality textiles, a sector in which it is the market leader. Vertical integration is the best guarantee of access to market-leading research and development, encompassing the most sought after raw materials and ensuring the control of the manufacturing process. With this tireless pursuit of quality allied to traditional traditional and Italian craftsmanship, Loro Piana is a benchmark in the world of luxury.
"Certain information included in this release is forward looking and is subject to important risks and uncertainties and factors beyond our control or ability to predict, that could cause actual results to differ materially from those anticipated, projected or implied. It only reflects our views as of the date of this presentation. No undue reliance should therefore be based on any such information, it being also agreed that we undertake no commitment to amend or update it after the date hereof.”
Regulated information related to this press release and presentation available on our internet site www.lvmh.com
A conference call will take place on Monday 8th July from 6.30pm (Paris time)
Number to call from France : +33 (0)1 70 77 09 35
Number to call from UK : +44 (0) 203 367 9453 or from US +1 866 907 5923