The French luxury brands group Moet Hennessy Louis Vuitton (LVMH) has acquired 80% stake in the Italian family controlled business firm Loro Piana for €2.7billion, more than 3.8 times the company's expected 2013 sales of €700 million. The news of the acquisition led to a rise in LVMH's shares by 1.9% to €131.15 each on the news yesterday. Since its acquisition of Bulgari in 2011, not counting the unsuccessful bid to acquire Hermes, Loro Piana is LVMH’s biggest acquisition. Loro Piana reported 13.1% growth in this financial year with a turnover of € 630 million. The Company gets 85% of its revenue from its 185 directly operated stores and shop-in-shops.
The Loro Piana brand is one of few family owned businesses in ‘the absolute luxury’ segment. The brand is renowned for its fine textiles using exceptional raw materials such as baby Cashmere from Hircus baby goat in Mongolia; the fibre made from lotus stems in Mynmar that must be weaved within 24 hours to keep from decaying. To make one meter of this fabric that feels like a blend of linen and raw silk, nearly 32,000 lotus stems are used. Loro Piana uses the super soft wool of the Vicuna that inhabit the high altitude grassland and mountains in Argentina, and which can only be shorn once in two years, each Vicuna yielding merely 150 gms of fine wool. The Vicuna was on the endangered list, but in 1994 Loro Piana earned the exclusive rights to reintroduce the Vicuna wool products.