LVMH, the world’s leading luxury products group, announced that it has bought a minority stake in Hermès, the family-controlled maker of luxury leather, fashion and cosmetic goods.
The French group now holds 14.2% of the share capital of Hermès International and says it has no intention of launching a tender offer, taking control of Hermès nor seeking board representation.
LVMH also holds derivative instruments over 3 001 246 Hermès International shares and intends to request their conversion. LVMH would then hold a total 17.1% of its capital.
“The objective of LVMH is to be a long-term shareholder of Hermès and to contribute to the preservation of the family and French attributes which are at the heart of the global success of this iconic brand. LVMH fully supports the strategy implemented by the founding family and the management team, who have made the brand one of the jewels of the luxury industry,” LVMH said in a release.
Hermès International said it has taken note of LVMH’s participation in the capital of the company and added that no sale is scheduled. “Today, Hermès Family shareholders have a strong majority control of nearly three-fourths of the shares. They are fully united around a common business vision.”
