Egeria exits luxury yacht maker

LVMH Moët Hennessy – Louis Vuitton will purchase Royal van Lent from Dutch investment firm Egeria, which bought the company two years ago. The price is undisclosed, but has been estimated to be at 11 times the company’s net profit.

Middle market Dutch private equity firm Egeria will sell portfolio company Royal van Lent to French conglomerate LVMH Moët Hennessy – Louis Vuitton for an undisclosed price.

A Reuters report has cited an unnamed source as saying the deal’s value at “less than €500 million” ($730m), and equivalent to 11 times Royal van Lent’s net profits.

Archimedes: Royal van
Lent-built luxury yacht

The deal is subject to regulatory approval, Egeria said in a statement, which also noted it had informed relevant trade unions.

Egeria purchased the 160-year old yacht maker, whose flagship brand is Feadship, in August 2006.

The custom built yacht market has strong prospects, with orders for yachts bigger than 50 meters experiencing 20 percent annual growth since 2000, LVMH said in a separate statement.

Egeria, which closed its third fund on its €500 million hard cap in July, was advised by Rothschild, Houthoff Buruma and Deloitte.

The yacht industry is a popular private equity target. Last week, Middle Eastern private equity firm Abraaj Capital paid an undislcose amount for a 50 percent stake in Numarine, a Turkish luxury-yacht manufacturer, for an undisclosed sum, and in February, European mid-market firm Balmoral Capital bought UK yacht builder Oyster Marine.