PARIS — LVMH Moët Hennessy Louis Vuitton is sailing into new luxury waters and buying a famous Dutch maker of custom megayachts priced at $30 million and up.
The French luxury giant said late Monday it signed an exclusive agreement to acquire Royal van Lent from Egeria, an investment firm based in the Netherlands.
A designer and builder of yachts more than 160 feet in length and sold under the Feadship brand, Royal van Lent has seen worldwide orders for the category grow more than 20 percent annually since 2000, according to LVMH.
Market sources estimate Royal generates annual revenues at north of 100 million euros, or $146 million at current exchange rates, and its production output at about five ships per year.
Financial terms were not disclosed, however an LVMH spokesman pegged the purchase price at 11 times net results — a reasonable multiple for the luxury sector.
In a statement, LVMH touted an “outstanding growth opportunity that is resistant to economic cycles” and a chance for the group to expand its reach beyond its core business groups: fashion and leather goods; perfumes and cosmetics; watches and jewelry; wines and spirits, and specialty retail.
LVMH said it would leverage its high-end client network and global reach to accelerate the growth of Royal van Lent “while maintaining its unique heritage, exclusive positioning and exceptional craftsmanship.”
Dick van Lent, chief executive officer of Royal van Lent, is to remain at the 160-year-old company. Feadship can boast that 40 percent of its clients are return customers as a game of one-upmanship plays out in the world’s most glamorous ports of call.
Monday’s news suggests LVMH kingpin Bernard Arnault, himself the owner of a monster yacht, is once again in a mood to spend — although still not for fashion.
Last April, LVMH acquired 100 percent of fast-growing Swiss watchmaker Hublot.
France’s second richest man has also been active on various business fronts through separate investment vehicles.
Last June, L Capital 2 FCPR, an investment group sponsored by LVMH and Groupe Arnault, said it acquired more than 70 percent of Princess Yachts International plc from South African entrepreneur Graham Beck.
The same month, Financière Agache Private Equity, part of Groupe Arnault, took a 37 percent stake in Groupe Paprec, France’s leading recycler of plastics and office paper.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews