LVMH’s Berluti acquires artisan shoemaker Delos Bottier & Cie, as Bernard Arnault makes headlines with an intricate network of holding companies in Belgium
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The Latest Investments: Anya Hindmarch, Berluti & Harry Winston
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Over the last decade, collaborations between luxury brands and contemporary artists have gone beyond mere artistic partnerships towards a new kind of luxury branding.
PARIS – Art and fashion have always developed side by side, for fashion, like art, often gives visual expression to the cultural zeitgeist. During the 1920s, Salvador Dalí created dresses for Coco Chanel and Elsa Schiapparelli. In the 1930s, Ferragamo’s shoes commissioned designs for advertisements from Futurist painter Lucio Venna, while Gianni Versace commissioned works from artists such as Alighiero Boetti and Roy Lichtenstein for the launch of his collections. Yves Saint Laurent’s vast art collection, recently auctioned at Christie’s in Paris, testified to his great love of art and revealed the influence of a variety of artists on his own designs.
In the 1980s, relationships between luxury brands and artists were advanced when Alain Dominique Perrin created the Fondation Cartier. In the Fondation Cartier pour l’Art Contemporain, a book marking the foundation’s 20th anniversary, Perrin says he makes “a connection between all the different sorts of arts, and luxury goods are a kind of art. Luxury goods are handicrafts of art, applied art.”
The Fondation Cartier pour l’Art Contemparain building in Paris
LVMH’s Berluti acquires artisan shoemaker Delos Bottier & Cie, as Bernard Arnault makes headlines with an intricate network of holding companies in Belgium
LVMH’s Berluti acquires artisan shoemaker Delos Bottier & Cie, as Bernard Arnault makes headlines with an intricate network of holding companies in Belgium
It’s been a big news week for LVMH founder and chairman Bernard Arnault, followin the news that France’s richest man has applied for Belgian citizenship, seemingly to avoid proposed Socialist wealth taxes.
As the news broke, French newspaper Liberation ran the headline “Casse-toi riche con,” inviting Mr. Arnault to ‘get lost’ in no uncertain terms. Mr Arnault counter announced that will sue the paper for “public insult”, over the offending headline’s “vulgarity and brutality.”
Legal skirmishes aside, Mr. Arnault’s application for citizenship has fueled a media enquiry as to why becoming Belgian could be so lucrative for the billionaire. In the process, various sources have uncovered companies linked to LVMH, which have amassed €4 billion in assets in Belgium.
“ Companies linked to LVMH, have amassed €4 billion in assets in Belgium ”
The LVMH investment companies, first disclosed last week by the Workers Party of Belgium, reported €630.4 million euros in profits since 2009, but used deductions to reduce their tax bill to only €24.2 million.
David Pestieau, head of the Workers Party research department – who has analysed the companies’ annual reports – described the network as “nothing more than a post office box” that allows LVMH to evade French taxes.
The scandal will no doubt continue to rule headlines, as the press patiently awaits news of the citizenship application process and more is understood about Arnault’s Belgian operations.
Acquired: Anthony Delos, Berluti
Berluti has completed the purchase of artisan shoemaker Delos Bottier & Cie, whose workshops are located in Rosiers-sur-Loire near Angers, France. Although Berluti has not yet formalised the acquisition or skills transfer, Anthony Delos commenced his role as shoemaker for Berluti on September 3, 2012.
Source: FashionMag
Speculation: Tory Burch, Carlyle Group
The Carlyle Group is said to be one private equity firm interested in acquiring a controlling stake in Tory Burch. The current sale process of the eponymous New York fashion house, being run by Barclays, was first reported in August 2011, though the company itself is reportedly saying it has no interest in ceding control.
Source: WWD
Delayed: Coty, IPO
Coty Inc has pushed the date of its $700 million initial public offering to the first half of 2013, in response to Europe’s debt crisis and a weak U.S. economic recovery. The decision to delay the IPO comes a little over a month after the company selected Michele Scannavini as its chief executive.
Source: Reuters
Stake: Anya Hindmarch, Private Equity
An unnamed private Qatari investor group has acquired a minority stake in accessories brand Anya Hindmarch, which valued the business at £70 million. The investors purchased the minority stake owned by long-time shareholders Kelso Place Asset Management LLP, where Ms. Hindmarch remains the controlling shareholder.
Source: WWD
Speculation: De Tomaso
The courts are trying to find a buyer for bankrupt Italian sports car manufacturer De Tomaso. Whilst many companies are said to have expressed interest, no deal has been finalised. BMW was said to be in dialogue with the ailing Italian automaker, a rumour they have since denied.
Source: Motor Authority
Acquired: Bruichladdich, Remy Cointreau
Rémy Cointreau UK Limited, a wholly owned subsidiary of the Rémy Cointreau Group, has agreed to acquire Bruichladdich Distillery Company Limited, the Islay single malt Scotch whisky distiller. It marks the group’s first move into the premium single malt Scotch whisky market.
Source: Bruichladdich
Speculation: BHP, Harry Winston
BHP Billiton is in protracted talks with Harry Winston, the Canadian mining and retail group, about a sale of its diamond business. Harry Winston is said to have secured bank financing for a possible deal, and is continuing negotiations with BHP to buy the Ekati mine in Canada.
Source: Financial Times
Buying: Angela Ahrendts, Burberry
Burberry CEO Angela Ahrendts was one of eight members of the company’s board of directors to increase their stakes after a record plunge in the shares. Ms. Ahrendts acquired 50,000 shares for approximately £543,000. In total, the Burberry directors spent about £1.1 million buying stock.
Source: Bloomberg
Speculation: Paris Gallery, IPO
Dubai based group Paris Gallery, boasting a network of over 40 luxury goods stores across the Middle East, has confirmed interest in a future initial public offering. CEO Mohammed Al-Fahim told Reuters: “One of the rationales (of an IPO) would be the continuity of the company. An IPO is a sort of safety net for us to make us more transparent, more structured and more accountable.”
Source: Reuters
Finalised: Saab, NEVS
National Electric Vehicle Sweden (NEVS) has finalised its acquisition of Swedish automaker Saab, as well as the assets of subsidiary firms Saab Powertrain and Saab Tools. Though the acquisition doe not include use of the famous griffin logo, NEVS will be able to use the Saab name on its future products.
Source: Motor Authority
Speculation: L Capital Asia, India
Investment fund L Capital Asia is said to be negotiating with two Indian designers, Sabyasachi Mukherjee and Rohit Bal, looking to launch a joint venture. The Indian press went so far as to mention a desire to create an Indian LVMH and were able to confirm that it is now a minority shareholder in luxury brand distribution company Genesis.
Source: FashionMag
Selling: Leonardo Del Vecchio, Luxottica
Luxottica Group founder, billionaire Leonardo Del Vecchio, sold a 3.8 percent stake in the world’s largest maker of eyeglasses, in an offer aimed at boosting trading liquidity. 18 million shares were traded at €27 each, 8.2 percent below the previous day’s closing price,
Source: Businessweek
Speculation: Theo Fennel, Takeover
Luxury jewellery designer Theo Fennell has confirmed it is in preliminary takeover talks with EME Capital LLP, but said there could be no certainty that a formal offer would be made for the company. The seller of jewellery, watches, silver objects, and gifts, is currently valued by the market at £2.72 million, but has been reporting losses since 2009.
Source: Reuters
For more in the series of The Latest Investments, please see our most recent editions as follows:
– The Latest Investments: Coty, Porsche & Valentino
– The Latest Investments: Arnys, Graff & Vionnet
– The Latest Investments: Acquascutum, Ducati & Vertu
Creative Strategist, Digital
Sophie Doran is currently Senior Creative Strategist, Digital at Karla Otto. Prior to this role, she was the Paris-based editor-in-chief of Luxury Society. Prior to joining Luxury Society, Sophie completed her MBA in Melbourne, Australia, with a focus on luxury brand dynamics and leadership, whilst simultaneously working in management roles for several luxury retailers.
