LVMH to control luxury case maker Rimowa
Founded in Cologne in 1898, Rimowa has built a reputation for designing lightweight and easy to use luggage and expects revenue of over €400m this year.
LVMH is buying the stake from Dieter Morszeck, grandson of the founder of Rimowa, who will retain a stake in the business and maintain his leadership role.
Rimowa’s aluminum suitcases, which cost between €300 and €600, are popular with Chinese buyers who use them to transport luxury goods they buy when travelling abroad.
Analysts predict growth in the luxury goods industry will remain subdued in the medium term but high-end travel is expected to continue to grow strongly.
“This acquisition follows the acquisition of Tumi by Samsonite, removing the only other meaningful high-end luggage brand from the market,” said Exane BNP Paribas analyst Luca Solca.
“Luggage should be favoured by the continuing development of tourism.”
Rimowa is known for making the first aluminum flight case in 1937 and the first lightweight polycarbonate suitcase in 2000. It recently joined forces with Lufthansa to launch the Rimowa Electronic Tag.
This feature simplifies baggage check-in by matching, with the use of a smartphone, the boarding card with a Bluetooth electronic tag integrated within Rimowa suitcases.
The transaction must be approved by competition authorities and is due to be completed in January.
.@RIMOWA, global leader of high quality luggage, joins the #LVMH Group https://t.co/dknonfTGQT pic.twitter.com/QsAR0okJvW
— LVMH (@LVMH) October 4, 2016
