PARIS, Jul 8, 2013/ — Loro Piana, renowned for its luxury fabric especially cashmere has chosen to join the LVMH Group. The Loro Piana family has chosen to sell a majority stake in their family business to the French luxury purveyor.
Loro Piana is more than just a renowned label, it embodies a family’s passion for the highest standards of craftsmanship and quality. With knowledge and experience gained over six generations, Loro Piana creates exceptional products and fabrics, especially in cashmere where Loro Piana is the leading specialist in the world.
Commenting on the agreement with LVMH, Sergio and Pier Luigi Loro Piana said, “The Loro Piana family is proud that our name is now associated with the LVMH Group. Under Bernard Arnault’s leadership, LVMH has proved that it respects and nurtures family businesses and is most likely to respect the values and traditions of our Maison, as well as our desire to provide our clientele with unparalleled quality. By joining LVMH, a group built around a unique set of other historic Maisons, Loro Piana will benefit from exceptional synergies while preserving its traditional heritage.”
The Loro Piana family began trading wool and fine textiles at the beginning of the 19th century and in April 1924 Pietro Loro Piana established the business in Qarona Sesia, Italy. His work is continued today by Sergio and Pier Luigi Loro Piana. Under their leadership, Loro Piana has become the word’s leading artisan in cashmere and the rarest wools and has developed a worldwide network of more than 130 exclusive boutiques where products are distributed under the Loro Piana name.
Loro Piana is globally renowned for its devotion to quality, innovation in textile products, unrivalled standards in design, in its search for new materials and for the quality of its craftsmanship.
Loro Piana uses the finest materials available in the world, such as baby cashmere ; it is also a specialist in Vicuna, a species of animal which Loro Piana has made a fundamental contribution to saving from extinction; and many other exceptional meterials, not least the lotus flower and the exceptionally fine wools from merinos. At each stage of sourcing and production, Loro Piana combines exceptional craftsmanship with the most advanced technology in the pursuit of quality.
Sergio and Pier Luigi Loro Piana remain 20% shareholders and keep their functions at the leadership of the company.
The transaction, subject to approval by the competition authorities, covers 80% of the shares for an amount of EUR 2.0 billion (enterprise value of 100% equating to EUR2.7bn). Loro Piana is expected to achieve 2013 sales of EUR 700 million, with ebitda representing over 20% of sales.