GIIRA YACHTS - India's First Yacht Blog: feadship SL

In a case of the Hunter becoming the Hunted...LVMH seems to be doing all the hunting in the world yachting industry.

Only last time we reported that LVMH had bought over the acclaimed Princess yachts of UK, and now to top that - the handbag has gone shopping alone - and has bought off one of the best super-yacht builders of its time - FEADSHIP !

The widening gulf between the haves and the have-yachts has prompted LVMH, the world’s biggest luxury goods group, headed by Bernard Arnault, to enter an exclusive agreement to buy Royal van Lent, the Dutch builder of Feadship customised motoryachts, which measure 50m or more.

ROYAL VAN LENT

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.

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 meters has grown by more than 20% per annum.

All yachts are manufactured in the Netherlands, and over 800 yachts have been manufactured since the Company's inception.

LVMH & YACHTS...

In June, an investment arm of LVMH acquired Princess Yachts International, maker of the boat that starred in the James Bond flick 'The World Is Not Enough.'

Whether LVMH intends to start selling boats clad in brown leather with little tan 'LVs' festooning the deck is unclear. Another perfect synergy: christening the boats with bottles of Moet. The move extends LVMH’s luxury expertise and brand awareness into the ultimate luxe category.

LVMH’s acquisition follows the purchase of British yacht maker Oyster Marine by Balmoral Capital, a private-equity firm. And in July, Rolls-Royce Marine–the boat guys, not the car guys–teamed up with a consortium of American shipbuilders led by Atlanta Yachts to build boats 300 feet to 500-feet long. The team said the weak dollar gives it a huge cost advantage over its European competitors.

THE SUPER-YACHTING TREND

The deals might end up looking brilliant in five years. But given the sputtering global economy and softer commodity prices, it is unlikely that the world will keep cranking out as many boat-loving billionaires.

What is more, as Thyssen-Krupp Marine and others have learned, building custom megayachts is one of the most complex businesses in the world. The industry is full of tales of shipyards posting losses on yachts costing $100 million or more because of delays, miscalculations and cost overruns. And that’s in good times.

QUOTES

Antonio Belloni, Group Managing Director of LVMH, commented: "This acquisition is an outstanding opportunity for LVMH to welcome to the group as prestigious a business as Royal van Lent, which is well-established in the ultra-luxury market. We are confident about its growth potential in the exclusive mega-yacht sector, a market with sustainable growth prospects."

Dick van Lent, Chief Executive Officer of Royal van Lent, added: "I am delighted that Royal van Lent will become part of the LVMH family, which has a proven track record in preserving the heritage of prestigious brands, with high quality products, while positioning them for successful global growth. We look forward to benefiting from the support and strategic leadership of the world's leading luxury goods company. I am pleased to be involved in the continued development of Royal van Lent, a company with 160 years of history in yacht construction, as part of the LVMH family."

So...how much money was in the LV handbag that was handed over to Egeria, the Amsterdam private-equity that sold Feadship ?

Don't know precisely...but we hear it's a cool Euro 200-400 Million....
Read more...

Feadship has launched Ocean Mercury, the first custom-built yacht in a new modular concept called SL39. Built by Koninklijke De Vries Scheepsbouw, the SL39 is unique in the so-called ‘semi-series’ market as it allows for the choice of a completely original exterior style..

Designed by De Voogt Naval Architects, with an interior by Terence Disdale, Ocean Mercury has a classic Feadship look. More SL39s are in production, and still available for delivery from 2009 onwards.

Like all SL39s, Ocean Mercury is a full displacement world cruiser with a steel hull, aluminum superstructure and a top speed of around 14 knots. The infrastructure of the hull construction, technical systems and equipment were predetermined, while the hull design is based on a grid pattern with zones for engineering and accommodation spaces. Taking these details as a platform, clients have total freedom when it comes to the layout and design of the living areas, the exterior styling above the hull, and the layout of the outdoor deck areas.

SL39 offers owners the autonomy of a custom yacht with the synergies of semi-series production. The building blocks are in place and engineering features such as the propulsion, engine room, crew quarters, stairways and centralized air conditioning have all been worked out in advance, using our vast experience in these areas. Quality, reliability, functionality and state-of-the-art technology are recognized Feadship characteristics. All have been standardized within the SL39 design platform.

Due to be berthed in the Mediterranean, Ocean Mercury is very much a family boat. The owner has taken good advantage of the flexibility options, for example making the four guest cabins easily convertible into two VIP staterooms. The light and contemporary interior is signature Disdale with bleached oak with ivory colored carpets and fabrics.

Due for delivery in December 2008, SL39 mk2 will feature exterior styling by Guido de Groot (who will also be responsible for SL39 mk4) and an interior by Bannenberg. This will be followed towards the end of 2009 by SL39 mk3, for which the Dutch designers Fokkema have created the interior while De Voogt Naval Architects is responsible for the exterior brief. The plans for the next ones will be announced in the near future.. Read more...