5 Companies You Didn't Know Were Owned by LVMH

Moët Hennessy Louis Vuitton SE commonly known as LVMH is the biggest French luxury conglomerate formed in 1987 after the fashion house Louis Vuitton and wines and spirits company Moët Hennessy merged together. LVMH has been in existence since 1987, but Louis Vuitton has a rich history even before that as it began way back in 1854.

LVMH owns 75 brands in 6 business groups, which are: Wines & Spirits; Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, Selective Retailing, and Other Activities. Some other names that they own include Fendi, Givenchy, TAG Heuer, and many more

Since 1989, Louis Vuitton has been led under the guidance of its chairman and CEO Bernard Arnault. He personally took a majority of stake in the company and has made quick and major acquisitions of luxury brands across various industries.

Its latest deal of acquiring the luxury jewellery company Tiffany & Co. made headlines all over the world. The deal was closed for approximately $18 billion. Here are 5 such acquisitions made by LVMH which have gone down the books of history.

Bulgari

Bulgari deals in Luxury goods and was acquired at a price of €3.7 billion. This acquisition took place back in 2011. Bulgari is known for its colourful and vibrant jewellery. It has been at the forefront of the luxury market since 1884 when it was founded by Sotirio Bulgari. This made LVMH expand its department of Watches & Jewelry. The acquisition included the purchase of a 50.4% stake in Bulgari from the Bulgari family, as well as a tender offer for the remainder of the company.

The Watch & Jewelry department gives a profit of approx €0.7 billion profit on €4.4 billion in revenue.

Fendi

Fendi deals in fashion and was acquired at an estimated value of $259.4 million. This acquisition took place back in 2001. Fendi was founded by Adele and Edoardo Fendi in 1925. The Italian company soon became famous for its fur, leather goods and other luxury products. LVMH had started its ownership journey by buying a 25.5% stake in Fendi in 2000 with Prada. LVMH soon became the major stakeholder in November 2001 when it agreed to buy Prada's stake.

LVMH's Fashion and Leather Goods group, of which Fendi is a part, generated €7.3 billion in profit on €22.2 billion in revenue in 2019.9

Christian Dior

Dior as we all know is into the fashion industry and was acquired by LVMH back in 1984 at 1 franc. It was founded by its namesake founder in 1946 and was purchased by Arnault to protect Parisian textile group Boussac from bankruptcy. Boussac included Christian Dior. This brand has been one of the most profitable to LVMH.

Sephora

Sephora is a multinational company for personal care and beauty products. It was purchased by LVMH in 1997 and was founded in 1969. AT that time it roughly offered 15,000 different products. When LVMH purchased it, Sephora was part of a family of brands owned by founder Dominique Mandonnaud.

It generated a revenue of €14.8 billion and a profit of €1.4 billion in 2019.

Veuve Clicquot

Veuve Clicquot is a champagne brand and was acquired back in 1986. It was founded in the late 18th century by Philippe Clicquot. They were known for their winemaking business across Europe and the U.S. The company is credited with inventing rosé Champagne.20

Louis Vuitton purchased Veuve Clicquot just a year before it merged with Moët Hennessy in 1986.