LVMH, the company behind Louis Vuitton, Christian Dior, Loewe, and other esteemed fashion houses, recently bought out leading leather supplier Les Tanneries Roux. The business deal ensures the firms can continue to create sumptuous leather goods.
The acquisition makes sense, as leathergoods accounts for roughly 37% of LVMH’s total sales. LVMH also knows what it’s getting, as its bought leather from Les Tanneries Roux for more than 20 years.
Les Tanneries Roux’s chairman Jean-Claire Ricomard will retain his position to “ensure that the company’s successful growth strategy over many years will continue.”
LVMH seems happy to maintain the status quo, as it’s very complimentary about its new business.
“These leathers are carefully produced by its highly trained, successful and motivated teams supported by the business’ efficient organizational structure,” a LVMH spokesperson said in a statement.
This is LVMH’s latest effort to ensure it has easy access to the best materials in the business. Last October it gained a majority stage in Singapore based crocodile skin supplier Heng Long International Ltd. I wonder which business it will pursue next!
The terms and price of the latest business deal have been kept under wraps, but I’m sure buying out such an esteemed company can’t have come cheaply! Do you think LVMH’s decision makes good business sense?
[Image Source: Tomascastelazo/Wikipedia Commons]
