Giant luxury conglomerate Louis Vuitton Moet Hennessey (LVMH) announced earlier today that they plan on purchasing the entire Christian Dior Brand, “in an effort to strengthen its fashion and leather goods division.” This massive acquisition is expected to be valued at around $13 Billion and is part of their strategic attack on the industry. LVMH said in a statement that the deal will be achieved through a simplified public offer by Groupe Arnault for the rest of the Christian Dior shares it doesn’t currently hold. The deal will consist of €172 EUR per share in cash in addition to 0.192 Hermès International shares for each Christian Dior share.
According to Bernard Arnault, chairman and chief executive of LVMH, “The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH’s fashion and leather goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide.”
This move will solidify and fuse together the Christian Dior brand. Revenue for Dior has doubled in the past five years with improved profitability and increase in profits. LVMH expects this deal to be filed by the end of May.