Louis Vuitton Moet Hennessy (LVMH) appears to be making some heavy-duty stake purchases in luxury firms. Earlier this month I had written about how the luxury conglomerate had increased its stake in French firm Hermes spiking rumors of an eventual takeover. This time around, LVMH has put its money in the shoe business by acquiring shares in the Singapore-based Charles & Keith. In this case, at least, there will not be apprehensions regarding LVMH’s ambitions. On the contrary, this connection with the luxury conglomerate should spell great news for the designer shoe brand.
The SG$30 million (US$23.5 million) deal between LVMH and Charles & Keith was struck in November last year. L Capital Asia, LVMH’s private equity arm picked up a 20 percent stake in the shoe company. Owned by brothers Charles and Keith Wong, it appears that the luxury shoe firm negotiated with several big investors before deciding to go with LVMH. The interest that was shown in the Singaporean company is a direct result of the immense growth that Charles & Keith has seen since its inception in 1996.
According to Charles & Keith’s chief executive and owner Charles Wong, it was not just about the money. The alliance with LVMH will give the designer shoe company far greater exposure. LVMH is known for its expertise in branding. The company owns several big-ticket fashion brands like Givenchy and Dior among others. Charles & Keith is a young, fast-growing firm that is eyeing markets in China, US and Western Europe. The LVMH influence can only be a good thing.
Via: The China Post