LVMH Snaps Up Crocodile Goods Firm
French luxury giant LVMH Moet Hennessy Louis Vuitton plans to buy a controlling stake of crocodile-skin-goods business Heng Long through an initial S$160.8 million ($123.8 million) offer for the company.
Heng Long is one of the five top-tier tanneries of crocodilian leather in the world, with an entrenched position in the global supply chain of crocodilian skins and leather used by the luxury and high-end fashion industry.
After completion, Heng Long’s management has agreed to make a S$69.5 million reinvestment to create a joint venture with the luxury giant, in which LVMH will have a 51% stake and Heng Long management a 49% stake.
An offer document said the purchase will “strategically complement LVMH fashion and leather goods in the procurement of high quality crocodilian skins for the manufacture of premium leather accessories sold and marketed by LVMH Group brands.”
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