L Capital buys majority stake in Italian clothing maker

L Capital, a private equity fund backed by French luxury products conglomerate LVMH Moët Hennessey Louis Vuitton, has acquired a majority stake in Italian clothing manufacturer Piazza Sempione.

The private equity firm L Capital, which is sponsored by French billionaire Bernard Arnault’s luxury goods company LVMH, announced that it has acquired a majority of Italian fashion house Piazza Sempione. Terms were not disclosed.

The acquisition of the clothing maker is just the latest in a string of deals for L Capital, which has completed 16 investments over the past five years in the fashion, food, video game distribution, and outdoor furniture industries. It currently controls a six percent stake in Italian luxury goods giant Mariella Burani Fashion Group, and was part of a €105 million ($132 million) buyout of Swedish clothing manufacturer Gant in 2003.

L Capital will keep the company’s management structure intact, but plans to grow the company by expanding its presence in the United States and Asia through Piazza’s namesake stores, according to Women’s Wear Daily. Piazza Sempione was founded in Italy in 1991, but exports worldwide account for about 90 percent of its business.

L Capital’s sponsor, LVMH, is the world’s largest luxury goods conglomerate. It is 51-percent-owned by French businessman Bernard Arnault – the seventh-richest man in the world – and partly owned by fashion house Christian Dior. It reported revenue of $16.84 billion (€13.38 billion) in 2005.