Loro Piana, the leading luxury and high-end cashmere specialist in the world, sold a majority stake of their family business to the LVMH luxury Group (LVMH Moët Hennessy Louis Vuitton). Sergio and Pier Luigi Loro Piana family remain 20% shareholders and keep their functions at the leadership of the company.
The Loro Piana family began trading wool and fine textiles at the beginning of the 19th century and in April 1924 Pietro Loro Piana established the business in Qarona Sesia, Italy. His work is continued today by Sergio and Pier Luigi Loro Piana. Under their leadership, Loro Piana has become the world’s leading artisan in cashmere and the rarest wools and has developed a worldwide network of more than 130 exclusive boutiques where products are distributed under the Loro Piana name.
«The Loro Piana family is proud that our name is now associated with the LVMH Group. Under Bernard Arnault’s leadership, LVMH has proved that it respects and nurtures family businesses and is most likely to respect the values and traditions of our Maison, as well as our desire to provide our clientele with unparalleled quality. By joining LVMH, a group built around a unique set of other historic Maisons, Loro Piana will benefit from exceptional synergies while preserving its traditional heritage,” commented Sergio and Pier Luigi Loro Piana.
«Loro Piana is an exceptionally rare Maison, rare in the unique quality and craftsmanship in its products, not least in cashmere and fine textiles, but also in the unbroken heritage and careful family husbandry over six generations. I am very pleased that Sergio and Pier Luigi Loro Piana believe that our group is best able to ensure the future of the house of Loro Piana. Indeed we share the same values : family and craftsmanship allied to the tireless pursuit of quality, and I am convinced that our group will prove a good home in realising the significant future potential of Loro Piana,» added Bernard Arnault.
Loro Piana uses the finest materials available in the world, such as baby cashmere ; it is also a specialist in Vicuna, a species of animal which Loro Piana has made a fundamental contribution to saving from extinction; and many other exceptional materials, not least the lotus flower and the exceptionally fine wools from merinos. At each stage of sourcing and production, Loro Piana combines exceptional craftsmanship with the most advanced technology in the pursuit of quality.
The transaction, subject to approval by the competition authorities, covers 80% of the shares for an amount of EUR 2.0 billion (enterprise value of 100% equating to EUR2.7bn). Loro Piana is expected to achieve 2013 sales of EUR 700 million, with ebitda representing over 20% of sales, announced Loro Piana.