PE firms compete for LVMH unit

Both Apax and ABN Amro Capital are in advanced talks with the French luxury products group to acquire La Brosse et Dupont unit which it now regards as non-core.

As part of its continuing aim to focus on its star brands portfolio, French luxury products group LVMH Moet Hennessy Louis Vuitton is planning to dispose of its La Brosse et Dupont unit.  The company manufactures a range of products from paint brushes, hairbrushes and toiletry cases. LVMH acquired the firm in 1998 via its LV Capital investment arm.


Two private equity firms, Apax Partners and ABN Amro Capital, have been shortlisted for final discussions to acquire La Brosse et Dupont, which is  being valued at between E120m and E150m. French buyout firm Société Générale Private Equity and Parcom Ventures have also been linked with an offer for the business.


According to a Dow Jones report, Apax and ABN Amro have both indicated that they are unlikely to match LVMH’s E150m proposed valuation of the business, with a E120m bid the highest on offer at present. 


If completed, the sale of La Brosse will be the biggest LVMH asset divestment since it sold its Pommery mid-market champagne brand to Vranken-Monopole for E152m in May 2002.


LVMH is expected to decide on the sale in the beginning of September.