The trunks Vuitton, owned by LVMH, are going to have a little sister German. The world number one in luxury (and owner of the ” Echos “) will acquire 80 % of the manufacturer of luggage high end Rimowa, a nugget of the Mittelstand for 640 million euros. The operation, which should be completed in January 2017, is a historic character for LVMH. Never the group of the avenue Montaigne had not made an acquisition in germany, which is already present in 80 countries.
With this transaction, LVMH also committed a strategic diversification, at a time when the world tourism industry is experiencing a real boom, and then that the luxury market is slowing down. Until now, the presence of LVMH in the luggage storage was limited to Louis Vuitton. After the takeover of Tumi by Samsonite, Rimowa was one of the last companies independent on the segment of the luggage storage top of the range.
suitcases recognizable to their grooves
The brand of factory of the family business ? Its luggage, suitcases, lightweight aluminum or polycarbonate, recognizable by their grooves and sold between 400 and 1,000 euros. Often waterproof, they are popular in the world of photography and cinema. The brand is also known for its repair service offered in hotels. At the head of the company for thirty-four years, Dieter Morszeck, increasing the turnover of € 3.5 million in 1982 to more than 400 million expected this year, to 3,000 employees in the world. The operational profitability would be ” two digits “, according to the entourage of the business, but falls short of the standard of the sector, estimated at 20 % by the analysts.
at its inception in 1898, the company from Cologne manufactured trunks for boats and trains plywood covered with a layer of leather. The second generation of leaders was launched in 1937 an aluminum model. And then, polycarbonate has made its appearance in 2000, with sales equivalent today in value to those made in aluminium. The high-tech niche also in an electronic tag equipped with Bluetooth to simplify the registration of baggage, according to a partnership launched in the spring with the Lufthansa.
handcrafted
While knowing a huge success, Rimowa has maintained a manufacturing largely artisanal. In addition to its Cologne factory, where they come out the bags in aluminum, the company operates a site in the Czech republic, which focuses on the polycarbonate. Add a plant in Brazil to produce a bag of local color, the ” Bossa Nova “, and another in Canada, for the north american market.
Although famous for its products and services, the company itself has long remained far from the radar of LVMH. After a first contact made in the fall of 2014 by Alexandre Arnault, son of Bernard Arnault, CEO of LVMH, is Dieter Morszeck, the sole shareholder and grandson of the founder, who would have contacted the group in the CAC 40, to discuss a buyout. Alexandre Arnault, who was twenty-four years, will take over the function of co-managing partner of the company alongside Dieter Morszeck. Upon entering the fold of LVMH, it is planned to expand the distribution network of products Rimowa. France, a market which is still marginal, should see surge the famous suitcases on wheels.
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