French luxury goods maker LVMH (LVMUY) has agreed to take control of family-owned luggage maker Rimowa in a deal which gives the buyer its first German fashion house.
LVMH, whose labels include Christian Dior, Céline, Donna Karan and Marc Jacobs, said it will pay €640 million ($714.7 million) for an 80% stake in Rimowa, which expects revenue of more than €400 million this year.
Founded in Cologne in 1898 by Paul Morszeck, the German group claims to have made the first aluminium luggage trunk in 1937. It later introduced the first waterproof metal case, as well as product lines in polycarbonate and luggage featuring "smart" security features. Known for their distinctive parallel grooves, Rimowa's products are used by celebrities including Breaking Bad actor Aaron Paul and Israeli model Bar Refaeli.
Paul' grandson Dieter Morszeck will remain invested in the company and continue to lead it alongside Alexandre Arnault, one of three sons of LVMH chairman and CEO Bernard Arnault.
"Rimowa has revolutionized the luggage industry for over a century, its suitcases are renowned for their unique performance, quality and design," said LVMH CEO Alexandre Arnault in a statement.
LMVH, which exceeded analysts' profit and revenue expectations in its second quarter, had revenue last year of €37.5 billion and had a market value of just over €77 billion as of early Tuesday in Paris. It reports third-quarter results on Oct. 10.
Its shares were recently up 0.7% at €153.30.