Louis Vuitton parent company LVMH in talks to acquire Rapha
LVMH showing interest in entering high-end sports and leisure market with interest in Rapha and Pinarello
Multinational luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton SE are reportedly in talks to buy British upscale sportswear brand Rapha according to the Mail on Sunday.
In October, LVMH were in negotiations to acquire the high-end Italian cycling manufacturer Pinarello in an effort to enter the high-end sports and leisure market. LVMH’s interest in Rapha is a continuation of that strategy as the British brand has become a benchmark in the cycling industry for its stylish and trendy performance cycling apparel which comes with a premium price tag.
RELATED:Â Castelli Nanoflex 2 bib tights reviewed
Founded in 2004 by Simon Mottram, the company has supplied Team Sky since 2013 during which the British outfit won the Tour de France three times with Chris Froome. Castelli will provide Team Sky with their apparel in 2017 with Rapha stepping back.
LVMH own luxury brands in the clothing, cosmetics, fashion accessories, jewelry, perfumes, spirits, Swiss watches and wines. Companies under the parent organization include Dior, Louis Vuitton, De Beers Diamond Jewellers, TAG Heuer, Marc Jacobs, Moet & Chandon and Sephora.
RELATED:Â Fabric R150 mini pump review
With its interest in Rapha and Pinarello, the French multinational is making its interest in entering the high-end sport and leisure market clear after both companies establish strong brand reputations after years of sponsoring Team Sky. According to the Mail on Sunday though a source confirmed the two companies were in talks, both LCMH and Rapha declined to comment on the report. Pinarello released a statement in October to confirm they were looking at was of expanding the business and that in the case of an acquisition, the family would continue to operate the company.
RELATED:Â Rapha Classic Winter Jacket for protection from the cold, wind and rain
Rapha splits opinions in the cycling industry with some saying it’s overpriced however its success in the British, North American and Asian market saw the company made a pre-tax profit of £1.1 million in the year up to Jan. 31, 2016 on a turnover of £48.8 million.
