May 01, 2017 06:39 PM EDT
The French luxury group LVMH Moet Hennessy Louis Vuitton SE has gained full control of the 70-year-old Parisian fashion house Christian Dior in a mammoth deal worth around €12.1 billion.
The deal, valuing at €260 per share, would simplify LVMH's relationship with Christian Dior by buying out minority shareholders.
Billionaire Bernard Arnault, who has a net worth of $46.3 billion, has announced it was buying the remaining 26 per cent of Christian Dior it does not yet own, folding the couture house into its group for €6.5 billion. Arnault took control of Dior's and Louis Vuitton's parent companies in the 1980s and later added brands that range from fashion retailer Fendi to jeweler Bulgari and suitcase maker Rimowa.
The two-part transaction deal marks one of LVMH's biggest ever acquisitions and adds Christian Dior Couture to its fold to join Dior perfumes and beauty which the French luxury empire already owns during a 1960s-era transaction to raise capital for the then-troubled fashion house whose designers over the years have ranged from Pierre Cardin to John Galliano.
LVMH, which is controlled by the Arnault family by 47 percent, announced the full acquisition will also boost the earnings of the group from the first year. The transaction is expected to be completed during the second half of 2017.
Arnault has said the deal would "allow the simplification of the structures, long requested by the market, and the strengthening of LVMH's fashion and leather goods division thanks to the acquisition of Christian Dior Couture, one of the most iconic brands worldwide."
Designer Christian Dior, who died in 1957, founded the House of Dior in 1946, with backing from businessman Marcel Boussac. Since then, it has expanded into perfume, watches and accessories and the couture arm has 198 stores worldwide.
The luxury label continued its growth momentum over the last twelve months, with revenue in excess of €2 billion, an earnings before interest, tax, depreciation and amortization of €418m3 and profit from recurring operations of €270 million.
The acquisition will be accretive (+2.7 per cent on a pro forma basis) to LVMH earnings per share from the first year.
People who travel for business two weeks or more a month report more symptoms of anxiety and depression and are more likely to smoke, be sedentary and report trouble sleeping than those who travel one to six nights a month, according to a latest study conducted by researchers at Columbia University's Mailman School of Public Health and City University of New York.
President Trump said Friday he is declaring a national emergency on the southern border, tapping into executive powers in a bid to divert billions toward construction of a wall even as he plans to sign a funding package that includes just $1.4 billion for border security.
Amazon's decision to abandon plans to build a new campus in Long Island City, Queens, has drawn cheers from several politicians, community organizers and other locals opposed to the expansion.
One of the hottest topics at the World Economic Forum in Davos, Switzerland has been Alexandria Ocasio-Cortez's proposed 70% marginal tax rate on all income above $10 million.
In recent decades, Europe has experienced a downward trend in the annual number of deaths. Not only was this trend not arrested by the economic recession that started in 2008, in fact, the rate of decline increased during the recession years.
Discovering that your new designer handbag or gold watch is a fake is costly and annoying, and counterfeit medical devices or drugs could have even more serious consequences. But seemingly as soon as manufacturers develop a new method to ensure product authenticity, counterfeiters find a way to outsmart it. Now, researchers have created an "unclonable" tag that can never be replicated, even by the manufacturer. They report their results in ACS Applied Materials & Interfaces.
The traditional model for setting auto insurance premiums has been to base rates on the motorist's driving history, age, gender and even marital status (in some states). Thanks to new technological options, insurance companies, and motorists have started to work together to give the insurance companies access to better data on an individual driver's risk level, and give the same driver a sense of greater control over how much he or she will pay in insurance premiums.
Consumer brands have long used old-fashioned focus groups, interviews and surveys to best gauge consumer wants, desires and needs as part of processes that range from product development, to marketing and sales. As machine learning and artificial intelligence (AI) have emerged, there is an increasing interest in the ability to harness these solutions to save time and money, and to yield more reliable consumer insights.