LVMH Buys Majority Rimowa Stake for $716 million
The world’s largest luxury group LVMH got a bit bigger Tuesday after a $716 million deal to take a majority position in German luggage maker Rimowa.
The world’s largest luxury group LVMH got a bit bigger Tuesday after a $716 million deal to take a majority position in German luggage maker Rimowa. The AFP reports that Cologne-based Rimowa, known for its lightweight aluminum suitcases, will continue to be run by Dieter Morszeck, the grandson of the firm’s founder; Morszeck will also retain an equity stake.
“We share with Dieter Morszeck the same passion for innovation and a common desire to offer very high-quality products derived from a European tradition of craftsmanship,” LVMH’s chief executive Bernard Arnault said in a statement.
Arnault’s son Alexandre will join Rimowa as co-CEO after the deal for the 80 percent stake closes, which is expected to happen by January.
Rimowa employs 3,000 people and distributes its products in 65 countries through nearly 150 stores and partners.
The company has sought to remain a pioneer in the luggage industry, developing a waterproof case and the use of lightweight polycarbonate.
Its latest innovation is including a small screen that displays the luggage tag, facilitating check-in via a special application.