Rimowa is generally regarded as one of the premium luggage makers. LVMH has just paid $716mn (2.2x sales) for an 80% stake in the German company. The distinctive corrugated aluminium suitcases have grown at 30% p.a.
Listed suitcase maker, Samsonite (1910 HK) has not been growing so fast trades at 1.9x. LVMH should be pretty happy with that price. Premium luggage maker Tumi was recently acquired by Samsonite in August of this year for $1.82bn or 3.2x revenue.Tumi revenue growth was also relative slow compared to Rimowa.
All ends up, LVMH needed a smaller Zero Halliburton attache case to transport the cash to Rimowa. Nice trade.