LVMH gains majority control of Fendi, the famous Italian luxury brand, through the acquisition of PRADA's stake

LVMH, Moët Hennessy Louis Vuitton, and PRADA announced Nov 24th 2001 an agreement whereby LVMH will acquire PRADA's stake in Fendi, representing 25.5% of the company's share capital.

Following this transaction, LVMH will hold 51% of Fendi's share capital, alongside the Fendi family, who hold 49%.

In October 1999, LVMH and PRADA announced an agreement providing for their acquiring 51% of Fendi through a joint venture in which they held equal stakes.

LVMH is delighted with this new agreement, which paves the way for accelerated development of one of Italy's greatest luxury brands. Since October 1999, significant progress has been made in reorganisation and development in cooperation with PRADA and the Fendi family. Its fruits have been particularly visible in a considerably strengthened network of proprietary stores. In the space of 18 months, the number of proprietary stores in the Fendi global network has risen from 4 to 83. Fendi has also opened flagship stores in the famous avenue Montaigne in Paris, and in London, as well as other stores in cities including Bologna, Tokyo, Sydney and Bangkok.

Fendi has also terminated a number of licences and has reorganized the company on both an operational and industrial level in order to position it for international development.

Almost two thirds of Fendi's sales now stem from proprietary stores, against less than a quarter in October 1999.

Source: LVMH news release
November 2001