Louis Vuitton, the French luxury fashion brand, recently acquired Australian outback outfitter RM Williams. This acquisition has been making headlines since it was announced in 2020.
The question on everyone’s mind is, “How much did Louis Vuitton pay for RM Williams?” Let’s explore the details of this acquisition.
Background of RM Williams
RM Williams is an Australian leather goods and clothing company founded in 1932 by Reginald Murray Williams. The company is known for its high-quality boots made from one piece of leather and its rugged outdoor clothing.
The Acquisition
In October 2020, L Catterton Asia, a private equity firm backed by LVMH (Louis Vuitton Moet Hennessy), acquired a controlling stake in RM Williams from the previous owner, mining magnate Andrew Forrest. Shortly after that, Louis Vuitton announced that it had acquired the remaining shares of RM Williams.
The Price
The financial details of the deal have not been officially disclosed. However, according to reports from Reuters and The Australian Financial Review, Louis Vuitton paid around AUD $200 million (approximately USD $147 million) for RM Williams.
The Significance
This acquisition is significant for both companies as it allows them to expand their reach and tap into new markets. For Louis Vuitton, buying an established Australian heritage brand like RM Williams gives them a foothold in the country’s lucrative luxury goods market.
For RM Williams, being part of LVMH’s portfolio provides access to the resources and expertise of one of the world’s biggest luxury groups. This can help them expand their distribution network beyond Australia and into other parts of Asia and Europe where LV has a strong presence.
Conclusion
In conclusion, Louis Vuitton’s acquisition of RM Williams was a strategic move that allowed both companies to expand their reach and tap into new markets. While the price tag of AUD $200 million may seem steep, it is a worthwhile investment for LV to gain a foothold in the lucrative Australian luxury goods market. As for RM Williams, being part of LVMH’s portfolio provides access to resources and expertise that can help them grow and expand beyond Australia.