French firm LVMH secures majority stake in German luggage company Rimowa
French luxury group LVMH has bought a majority stake in high-end German luggage company Rimowa, and handed control of the business to the 24-year-old son of chairman Bernard Arnault.
LVMH will take an 80% stake in the company for 640 million euro (£560 million), while a minority stake will be retained Dieter Morszeck - the grandson of the founder of Rimowa.
The luggage company, which is headquartered in Cologne, currently employs around 3,000 people and is expected to deliver revenue to the tune of 400 million euro (£350 million) by the end of 2016.
Alexandre Arnault, the 24-year-old son of LVMH chairman Bernard Arnault, has been appointed co-chief executive, alongside Mr Morszeck.
The deal is set to be completed in January 2017.
Mr Morszeck said: "Over the past two years I have had the opportunity to establish close ties with the Arnault family, and in particular with Alexandre.
"Alexandre and I have discussed at length the attractive development prospects available to us and the common values that we share.
"I am delighted that he is joining Rimowa and I have full confidence in his ability to accelerate the development of the business by my side."
Mr Morszeck joined Rimowa in 1972, decades after it was founded by his grandfather in Cologne in 1898.