Business as usual for LVMH (Moet Hennessy Louis Vuitton), one of world’s largest fashion manufacturing corporation. It has been announced on March 7 that LVMH is to acquire Bulgari Corporation for a disclosed $5.2 billion (€3.7 billion). This is the largest LVMH purchase to date.
As mentioned in the earlier article Bulgari family is still very involved in managing the company. Currently a grandson of the founder Sotirio is a Chairman. Before the acquisition family owned the controlling 51% of the brand. After the takeover Paolo and Nicola Bulgari chairman and vice chairman of the company, will get two seats on the board of LVMH as part of the deal.
The most recent deal for LVMH has been purchase of Hermes in October 2010. According to analysts Bvlgari deal is 82% costlier than Hermes due to amount offered per share. Total offering is 28.2 times EBITA (earnings before interest, taxes, depreciation and amortization). Some analytics have already expressed concern over the numbers calling them risky.
Bvlgari brand (spelled with V to emphasize Greek origin) was founded 125 years ago by Greek immigrant Sotirio Bulgari. Fashion brand is currently operating 230 stores across the world selling luxury jewelery goods and handbags, eyeglasses, watches and perfumes.
Despite all odds this is the most positive news for LVMH that is still recovering from John Galliano scandal. Bvlgari on it’s end is not without scandals either. Most recent being the ban of their ad with naked Julianne Moore posing. The ad was banned in Venice with President of Venice Foundation making remarks saying that ad is inappropriate and is better off in Hollywood. The remark itself sparked outrage and deemed racist since Moore is American. It was understood that if non-American model/actress posed naked that would be Ok for Venice St. Marcus square.
Bvlgari sunglasses and Bvlgari eyeglasses are among most luxurious eyewear items on the market. Emerald collection is a Spring 2011 novelty that is also presented through a series of sunglasses among them are BV6050B, BV8079B and BV8081.