When Fashion Week meets M&A - again!

I would imagine that Fashion Week in New York, London, Milan or Paris usually doesn’t register in the psyche of many M&A bankers, however yesterday there was an announcement that may have some of them racing for their wives’ and girlfriends’ copies of Vogue.

Louis Vuitton CEO Mr Michael Burke announced that Marc Jacobs, the high profile American designer who has worked for Louis Vuitton for 16 years, had shimmied his collection down the cat walk for the final time and would be leaving to focus completely on his own existing Marc Jacobs label.

Why might this be relevant to M&A bankers I hear you asking?

The Marc Jacobs label is owned by Mr Jacobs himself, Mr Robert Duffy and LVMH Moet Hennessy Louis Vuitton, and in the course of the interview given by Mr Burke, it was stated that the intention was to IPO the label within three years. This would be a similar path trodden to that of Michael Kors Inc., the company and label owned by Michael Kors, the designer, which listed in the New York Stock Exchange raising $944m in December 2011. This is a company in which LVMH had held a stake of 33 per cent until 2003, when it sold the business to Michael Kors and Sportswear Holdings.

IPOs of luxury brands continue to attract investors, especially from Asia and LVMH, and they are no doubt looking to capitalise and build upon on the current success of the Marc Jacobs label.
 

Filed under: fashion, IPO, luxury, brands