LVMH Spent 2 Billion Euros To Buy Loropiana For Two Weeks.

When he was young, Antoine Arnault went to a Loro Piana store in Italy for every summer with his father, LVMH Group Chairman Bernard Arnault, to buy all kinds of polo shirts and jackets.

"My father and I usually wear clothes that are brand owned by LVMH group.

Only LoroPiana is an exception. "

Antoine, 38, recalls: "we love their classic style."

It is because of its love for this brand that in 2013, LVMH bought a 80% stake in the family brand at the price of 2 billion euros, and "LVMH bought the Italy luxury Loro Piana".

This is also the largest purchase made by LVMH since its acquisition of Italy's jewellery brand Bulgari50.4% in 2011 for $5 billion 200 million.

The acquisition surprised many people in the industry because LoroPiana had never been publicly sold.

"Loro Piana is a family business and is not publicly listed, unless they volunteer. You can't buy them directly."

AntoineArnault said.

He is now chairman of Loro Piana and is also CEO of LVMH's menswear brand Berluti.

In July 2013, SergioLoro Piana, who co runs Loro Piana with brother PierLuigi LoroPiana, suddenly told Bernard Arnault that they have decided to sell the company, and if LVMH group is interested, it will become the preferred acquirer.

In the face of unexpected olive branches, LVMH quickly made a takeover plan, and finally completed the deal within two weeks after receiving the news.

"LVMH group buys us not just because we like us, but also because they need us."

PierLuigiLoroPiana, now 64, said Loro Piana's current vice-president.

Through this paction, Arnaults and LVMH obtained the following valuable assets:

1. a vibrant luxury goods company has a series of popular luxury clothing products, such as the price tag of $14395.

Made of alpaca wool and cashmere wool.

The sweater made of Superfine Merino wool is priced at 3125 dollars.

2.LoroPiana also has one of the world's largest luxury yarn and textile production departments, producing cashmere wool, cotton and linen and other fabrics, with an annual output of more than 14 million 800 thousand square feet.

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Fabrics are very valuable resources for luxury brands such as Dior and Louis Vuitton, which are owned by LVMH.

3.LoroPiana also has an increasing number of men's and women's wear products and a wide range of retail networks.

The brand currently has 160 stores in the world and has 7 factories in Italy.

4.LoroPiana can also provide invaluable resources for LVMH.

The company has farms in the Andes of Peru and Argentina and has a place for harvesting wool in Mongolia.

Customers who buy clothes from LoroPiana often choose these precious materials to decorate their private aircraft and yachts.

Antoine Arnaul plans to help Loro PIana expand into leather products and use the preferences of "noble" fabrics in mainland China, Hongkong and Singapore to open up these markets.

"Competition with more brands means great opportunities."

"The synergy and leverage effects of the group will help LoroPiana greatly," he said.

Less than half a year after the completion of the merger, Sergio Loro Piana, a perennial illness, unfortunately passed away in December 2013.

Although Pier LuigiLoro Piana has grown up hundreds of millions of people, and the three children have grown up, he is not as old as people imagine, but still serves as the chief consultant of Loro Piana to participate in the operation of the company.

"My life has not changed much."

He said, "I still enjoy my work."

For LVMH, there is only one additional restriction on this paction.

"Sergio asked me not to introduce famous designers to the company."

Antoine Arnault said: "Sergio is worried that Loro Piana will become a designer's dependency and lose its own characteristics, which is not uncommon in the industry.

But even if he did not raise this point, I would not intend to do so.

This behavior is putting the cart before the horse, and it can not satisfy the customers' expectations of the brand. "

It is not easy for LVMH to acquire such a large family owned enterprise with a comprehensive supply chain and its staff of more than 2500 employees.

In addition to all kinds of complex procedures, the biggest challenge for Arnault and CEO Matthieu Brisset is how to maintain the quality of products and the serious attitude towards sewing technology.

"We received numerous and worried letters during the acquisition."

Arnault said: "our goal is to keep the product consistent style as far as possible and avoid unnecessary changes."