Consumer-focused private equity firm Catterton Partners has joined with Bernard Arnault’s family holding company and his publicly traded listed luxury products company LVMH to form L Catterton.
“We are delighted to partner with Catterton and its team,” said Mr. Arnault. “L Catterton will provide investors with a unique value creation platform, bringing together our global network and industry expertise with Catterton’s long-standing operational approach to building value in consumer investments. Having been investors in Catterton’s funds since 1998, we have participated in its growth and success, evidenced by its strong track record and its distinctive culture.”
The new investment partnership will combine Catterton’s North American and Latin American private equity operations with LVMH and Groupe Arnault’s existing European and Asian private equity and real estate operations, currently conducted under the L Capital and L Real Estate franchises. L Catterton will be 60% owned by the partners of L Catterton and 40% jointly owned by LVMH and Groupe Arnault.
LVMH, more formerly known as LVMH Moët Hennessy Louis Vuitton SE, is a European multinational luxury goods conglomerate, headquartered in Paris. The company was formed in 1987 through the merger of fashion house Louis Vuitton and champagne and cognac producer Moët Hennessy. LVMH has 60 subsidiaries that each manage a small number of prestigious brands. Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 41% of its shares, and 59% of its voting rights. Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and is also the CEO of LVMH.
L Catterton will be led by Global Co-CEOs J. Michael Chu and Scott Dahnke, currently Managing Partners at Catterton. L Catterton’s headquarters will be in Greenwich, CT and London, UK.
“The globalization of media and technology, combined with increasingly permeable geographic borders, is driving rapid consumer growth on an unprecedented global scale,” said Mr. Dahnke. “Together, Catterton and L Capital will create a global consumer investing franchise with unmatched access to resources in the industry. We expect this combination to further our mission of investing in high growth opportunities in categories with attractive consumer economics.”
Catterton Partners focuses exclusively on the consumer industry and invests in all major segments including food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. Catterton was founded in 1989 and is located in Greenwich, CT (www.cpequity.com).
“We are excited to announce this transformative combination and partnership with LVMH and Groupe Arnault,” said Mr. Chu. “The breadth of our collective expertise will be second to none in the consumer industry.”
The transaction is expected to close early in 2016 and is, of course, subject to certain regulatory and investor approvals.
© 2016 PEPD • Private Equity’s Leading News Magazine • 1-8-16
