LVMH acquires Dutch yacht maker

02 September 2008

French holding company LVMH, owner of such reputed names as Moet Hennessy and Louis Vuitton, is looking to expand its portfolio as the largest luxury goods conglomerate in the world.

Yesterday it announced the signing of an exclusive agreement with Egeria, an investment company based in the Netherlands, to acquire Royal van Lent, the Dutch designer and builder of luxury custom mega-yachts sold under the Feadship brand for an average price of $44 million each. Financial terms have not been disclosed.
 
This acquisition will enable LVMH to enlarge its scope of activities and to expand its presence in products and services at the top of the luxury market. Royal van Lent's yachts target an ultra-exclusive clientele and are built to the highest quality standards using specific know-how. Feadship's attributes of creativity, craftsmanship, innovation, quality and exclusive positioning are shared by all the luxury businesses operated by LVMH.

Founded 160 years ago, Royal van Lent enjoys a leading market position. It designs and builds custom mega-yachts under the Feadship brand, one of the most exclusive and prestigious brands in the world for motor-yachts measuring over 50 meters.

The custom-built ultra-luxury mega-yacht sector offers strong global growth prospects. By targeting exclusively ultra-high net worth individuals, Royal van Lent offers an outstanding growth opportunity that is resistant to economic cycles. Since 2000, the worldwide order book for custom-built luxury yachts measuring over 50 metres has grown by more than 20 per cent per annum.

LVMH will work closely with Royal van Lent's management team, and is committed to the continued, long-term development of the company and the Feadship brand. LVMH will leverage its very high end client network and global reach, both in developed and emerging countries, to accelerate the growth of Royal van Lent and the Feadship brand worldwide.

The objective is to consolidate the company's leadership while maintaining its unique heritage, exclusive positioning and exceptional craftsmanship. Dick van Lent will continue to head the company.