From Handbags to Super-Yachts...LVMH buys Feadship !

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...

Princess Yachts' class doubles with Louis Vuitton parentage

Seems like a typical English-French Love Affair...

Princess Yachts, one of the world's finest and most popular name in boating - has been acquired by the the world's largest luxury conglomerate - Louis Vuitton Moet Hennessy...better known as LVMH.


Bernard Arnault, the French luxury goods billionaire, is managed to add luxury motor yachts to his collection of handbags, watches, perfumes and champagnes.

Lastly, the L Capital had acquired another superior luxury British brand in the form of Aston Martin in Feb '07.

OFF-THE-BLOCK

Going at an estimated sum of £200 million, The Plymouth-based business has been acquired by a consortium by Mr Arnault: LVMH, the luxury goods company run by him; Groupe Arnault, his private investment vehicle; and L Capital, a private equity firm backed by Groupe Arnault and LVMH.

Sold by Graham Beck, a South African billionaire who made his fortune in coal, property and wine. Known as one of the world's leading race-horse breeders, with stud farms in South Africa and the United States.

He put the business up for sale about a year ago through Cavendish Corporate Finance, although he is understood to have rejected higher offers from parties planning to fund the purchase with debt.

PRINCESS

Princess Yachts was founded in 1965 as Marine Projects (Plymouth) Ltd to fit out and charter the Project 31, the first boat to be built at the company’s original factory facilities in Plymouth. It moved to its current purpose-built headquarters in 1997 and now distributes boats all over the world.


Princess Yachts was acquired by accident when he took over the Renwick Group in 1981. Under Mr Beck it has expanded to become one of Britain's biggest motorboat manufacturers.

LVMH

LVMH, the world's biggest luxury goods group, is best known for its Louis Vuitton handbags, Tag Heuer watches and Moët & Chandon champagne.


The group a part of the CAC40 companies of France, it has around 60 sub-companies with 60,000 employees under its umbrella.

Aston Martin, Tag Heuer, Acqua di Parma, Hennessy, DKNY and more are some of the famous brands...

INDIA...

What this means to India?

Well if it didnt mean much, then we wouldnt be going into so many details. But surely expect a BIG push for Princess Yachts coming your way in the near future.

With LVMH being big about re-inventing their model portfolios from time to time so that they can be trendsetters, expect newer models being sold worldwide through a larger distribution channel. Read more...