French billionaire Bernard Arnault will combine the Christian Dior fashion brand with his LVMH (LVMH Moët Hennessy Louis Vuitton SE) as part of a multi-billion-euro takeover aimed at harnessing the “high growth potential” of the iconic brand.
The deal, worth 12.1 billion euros, cuts through the existing complicated ownership structure to unite Christian Dior Couture and Christian Dior Parfums for the first time in decades. Under a series of planned transactions, LVMH will get Christian Dior Couture, made-to-measure gowns and men’s and women’s ready-to-wear lines. LVMH already owns Parfums Christian Dior, while Christian Dior Couture was controlled by the family-owned Groupe Arnault.
“The corresponding transactions will allow the simplification of the structures, long requested by the market, and the strengthening of LVMH’s Fashion and Leather Goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide,” Arnault said in a statement.
On February 12, 1947, Christian Dior presented his debut haute couture collection in Paris. It was immediately dubbed as the “New Look”. In the view of LVMH, the 70-year-old fashion label was “one of the most iconic brands worldwide,” selling a range of goods “almost exclusively” in 198 luxury boutiques around the world.
LVMH shares rose as much as 3.4 percent in early trading in Paris, while Dior gained as much as 13 percent.