French luxury products group LVMH Moet Hennessy Louis Vuitton said Monday it has signed an exclusive agreement with Dutch investment company Egeria to acquire Royal van Lent, the Dutch designer and builder of luxury custom mega-yachts sold under the Feadship brand.
The talks with owner Egeria, a Dutch investment firm, are based on an acquisition price worth approximately 11 times net profit. The estimated price equates to a transaction value of less than 500 million euros, a source familiar with the talks said.
This acquisition will enable LVMH to enlarge its scope of activities and to expand its presence in products and services at the top of the luxury market.
Royal van Lent’s yachts target an ultra-exclusive clientele and are built to the highest quality standards using specific know-how. Feadship’s attributes of creativity, craftsmanship, innovation, quality and exclusive positioning are shared by all the luxury businesses operated by LVMH.
Founded 160 years ago, Royal van Lent enjoys a leading market position. It designs and builds custom mega-yachts under the Feadship brand, one of the most exclusive and prestigious brands in the world for motor-yachts measuring over 50 meters.
The custom-built ultra-luxury mega-yacht sector offers strong global growth prospects. By targeting exclusively ultra-high net worth individuals, Royal van Lent offers an outstanding growth opportunity that is resistant to economic cycles. Since 2000, the worldwide order book for custom-built luxury yachts measuring over 50 meters has grown by more than 20% per annum.
Those luxury watch sell for an average 30 million euros ($44 million) each. (source)