France's LVMH to buy majority of German luggage maker Rimowa

BERLIN – French luxury group LVMH is buying a majority stake in German luggage maker Rimowa for 640 million euros ($719 million).

LVMH said Tuesday that Dieter Morszeck, the grandson of Rimowa’s founder, will sell an 80 per cent stake in the Cologne-based company that is known for its high-end aluminum and polycarbonate suitcases.

It said that Morszeck will continue to hold a stake in the business and keep his “leadership functions.” However, Alexandre Arnault, the son of LVMH CEO Bernard Arnault, will become Rimowa’s co-CEO alongside Morszeck.

LVMH owns brands such as Christian Dior, Kenzo and Sephora.

It says the Rimowa deal, which requires anti-trust authorities’ approval, should be completed in January.