LVMH, Catterton & Groupe Arnault Merge, Create World's Largest Consumer-Focused Private Equity Firm

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LVMH, Catterton & Groupe Arnault Merge, Create World's Largest Consumer-Focused Private Equity Firm
From www.justluxe.com, by Marissa Stempien

This week, L Capital, the private equity business of LVMH, American private equity firm Catterton, and French holding company Groupe Arnault announced that they would be partnering together to create L Catterton. The merger will join Catterton’s North American and Latin American operations with L Capital’s European and Asian operations and real estate firms, creating what is expected to be the largest consumer-focused investment company in the world. They are on track to total $12 billion in assets by the end of the year.

Under the terms of the merger, Catterton will own 60 percent of the new business, with Groupe Arnault and LVMH splitting the remaining 40 percent. The new conglomerate will have 17 offices on five continents which will allow them to corner new markets and grow their portfolio. Currently, Catterton has stake in big names like CorePower Yoga, P.F. Chang’s and Restoration Hardware, and privately holds over $5.5 billion in equity capital—partially aided by almost 20 years of investments from LVMH.

"We are delighted to partner with Catterton and its team," Bernard Arnault, Chairman and CEO of LVMH and Groupe Arnault, said in a release. "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.”

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