French luxury group LVMH, owner of the Louis Vuitton brand, has signed €640 million ($716 million) deal to buy majority stake from German luggage maker Rimowa. Since the world’s largest luxury-goods maker is buying 80% stake in high-tech luggage maker, Alexandre Arnault, son of LVMH chairman Bernard Arnault, will become co-chief executive officer of Rimowa alongside Dieter Morszeck, who retains his 20 percent stake in the company.
The acquisition is LVMH’s biggest since the 2013 purchase of cashmere maker Loro Piana.
Rimowa employs 3,000 people and distributes its products in 65 countries through nearly 150 stores and partners. Rimowa’s ribbed aluminium suitcases, a common sight in airport security lines, are owned by celebrities including Will.i.am and Gwyneth Paltrow. Priced between 300 and 600 euros, these suitcases are especially popular with Chinese buyers who use them to transport luxury goods they buy when traveling abroad.