|
LVMH in double swoop
|
 |
November 15, 1999: 8:31 a.m. ET
French firm buys U.K. auction house Phillips, Swiss watchmaker Zenith
|
LONDON (CNNfn) - French luxury goods retailer LVMH went on another shopping spree Monday, acquiring British auction house Phillips and Swiss watchmaker Zenith.
The Paris-based company, which boasts brands ranging from top champagne houses Dom Perignon and Veuve Clicquot to perfume and fashion labels Christian Dior and Givenchy, did not disclose the value of either deal.
LVMH's acquisition of Phillips, the world No. 3 auction house, comes less than two years after Francois Pinault, the head of diversified French retailer Pinault-Printemps-Redoute, paid a reported $1.5 billion for Christie's, one of the top two auction houses; Sotheby's is the other.
Earlier this year, PPR frustrated LVMH's hostile bid for Gucci when it took a 42 percent stake in the Italian fashion house.
Press reports prior to the latest deal said LVMH was set to pay almost $130 million for Phillips, which has had revenue of around $226 million so far this year through its 21 auction rooms worldwide.
LVMH said the acquisition fits its strategy of investing in companies with high growth potential.
Separately, LVMH also took control of family-owned Swiss watchmaker Zenith, which had revenue of almost $43 million last year.
This is the second Swiss watchmaker LVMH has bought in two months. In September, it made a $740 million on bid for TAG Heuer.
LVMH is one of the main players driving consolidation of the luxury goods sector worldwide. Last month, it made a joint bid with Italian fashion house Prada for Rome-based designer Fendi.
LVMH's stock was unchanged in Paris in early afternoon trade.
The deals came the same day Gucci reportedly was considering a $952 million bid for French fashion house Yves Saint Laurent. 
-- from staff and wire reports
|
|
|
|
|
|
LVMH
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
