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This Is Everything You Need to Know About LVMH Buying Christian Dior Brand!

26 April 2017

The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!

You’ve seen the story of LVMH buying Christian Dior, but you might not know what will happen with Christian Dior after LVMH buys it! Good Thing is, we know and here is everything you need to know!

Moët Hennessy Louis Vuitton SE or LVMH is a French multinational luxury goods company, formed after the merging of Louis Vuitton with Moet Hennessy

The luxury goods conglomerate is going to buy Christian Dior brand after a deal worth $13.1 billion.

The company that controls around 60 subsidiaries that each manages a small number of famous brands was already in control of the Christian Dior Perfumes.

According to Bernard Arnault, the chairman and CEO of LVMH, the company will take ownership of the entire brand, such as brand’s clothing, leather and shoes business.

The deal will simplify the relationship between the two by buying out minority shareholders.

The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!
The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!

As a part of the deal, the Arnault family offered to buy the 25.9 percent of Dior, the part that the company does not already own.

It will simply mean that the family would hand over a mix of cash and Hermes shares, valuing the brand at $282 a share, which is roughly 15 percent premium over the closing price, according to LVMH.

The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!
The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!

Dior will be owned by LVMH fashion and leather goods division for an enterprise value of €6.5 billion.

“A simplified public offer by the Arnault family group for Christian Dior shares — that it does not currently hold — and take form of a primary offer consisting of €172 per share in cash and 0.192 Hermès International shares for each Christian Dior share, and would be completed by two secondary offers, in cash and in Hermès shares respectively.”

If you need us to explain again, here it is.

Arnault is the current chairman and majority shareholder of Dior, as well as the chairman and CEO of LVMH.

The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!
The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!

Before the deal, Christian Dior SE was the main holding company of LVMH, but now will be part of the group.

Sounds good enough?

The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand!
The Story of LVMH Buying Christian Dior for $13.1 Billion Has Gone Viral! Here is What Will Happen with the Brand! |source: nytimes|

According to experts, the deal with Christian Dior, which had long been expected by industry observers, will close in May, and is projected to increase LVMH’s earnings per share within the first year of its completion.

What do you think about this deal?