LVMH invests in Italian brand Marco de Vincenzo
PARIS/MILAN - French luxury group LVMH will unveil on Monday a joint venture with Italian fashion brand Marco de Vincenzo as part of its strategy to gain exposure to young and potentially fast-growing fashion labels, sources close to the matter said.
The deal will involve LVMH taking a minority stake of about 45 percent in the ready-to-wear brand of the Italian designer who has been creating accessories for Fendi, one of LVMH's fashion brands, for more than 10 years, one of the sources said.
The transaction, estimated at between 10 million euros ($13.7 million) and 20 million euros - pocket money for LVMH, which generates annual free cashflow of nearly 3 billion euros - is spearheaded by Delphine Arnault, daughter of LVMH Chief Executive Bernard Arnault and deputy head of the group's flagship brand Louis Vuitton, the source added.
Last year the world's biggest luxury group invested in young French designer Maxime Simoens and English designers J.W. Anderson and Nicholas Kirkwood.
Rival Kering, owner of Gucci and Yves Saint Laurent, has been pursuing a similar strategy, buying stakes in fledgeling fashion brands such as Christopher Kane and Joseph Altuzarra.
As demand for mega-brands such as Louis Vuitton and Gucci flattens out, big luxury groups are on the prowl for tomorrow's next big brand and spreading their bets by investing in many different labels.
Monday's deal was first reported by fashion trade publication Women's Wear Daily on Sunday. ($1 = 0.7275 euros)
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