Private equity firm Catterton, LVMH, the largest luxury conglomerate in the world, and Groupe Arnault, the family holding company of Bernard Arnault, agreed to combine their private equity operations and create L Catterton, which is to become the largest consumer-focused investment firm in the world.
The new partnership will combine Catterton’s existing 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.
L Catterton will become the largest global consumer-focused investment firm with six distinct and complementary fund strategies focusing on consumer buyout and growth investments across North America, Europe, Asia and Latin America, in addition to prime commercial real estate globally. L Catterton expects to grow its assets under management to more than $12 billion after various successor funds are closed. With a 27-year history and more than 120 investment and operating professionals in 17 offices across five continents, L Catterton will be poised to leverage its unique global network and expertise to partner with consumer businesses in all major consumer markets.
L Catterton’s headquarters will be in Greenwich, CT and London, with regional offices across Europe, Asia and Latin America. L Catterton will be led by Global Co-CEOs J. Michael Chu and Scott A. Dahnke, currently Managing Partners at Catterton. Each fund will continue to be managed by its own dedicated team in their respective locations across Europe, Asia and the Americas.
“We are delighted to partner with Catterton and its team,” said Bernard Arnault, Chairman and CEO of LVMH and Groupe Arnault.
L Catterton will provide investors with a unique value creation platform, bringing together the global network and industry expertise of LVMH and Groupe Arnault, with Catterton’s long-standing operational approach to building value in consumer investments. LVMH has been an investor in Catterton’s funds since its inception in 1998.
“We are excited to announce this transformative combination and partnership with LVMH and Groupe Arnault,” said Michael Chu.
The transaction is expected to close early in 2016, subject to customary regulatory and certain investor approvals.
Catterton is the leading consumer-focused private equity firm with a twenty-seven year track record of success in building high growth companies. Since its founding in 1989, Catterton has leveraged its category insight, strategic and operating skills, and network of industry contacts to establish one of the strongest private equity investment track records in the middle market. Catterton invests in all major consumer segments, including Food and Beverage, Retail and Restaurants, Consumer Products and Services, Consumer Health, and Media and Marketing Services. Catterton’s investments include: Restoration Hardware, CorePower Yoga, Sweaty Betty, Outback Steakhouse, Plum Organics, Mendocino Farms, Noodles & Company, PIADA, Hopdoddy, Protein Bar, Bruxie, Snap Kitchen, Frederic Fekkai, PIRCH, Build-A-Bear Workshop, Wellness pet food, Nature’s Variety pet food, Kettle Foods, Odwalla and P.F. Chang’s, to name a few.
L Capital private equity funds invest in leading companies in attractive consumer categories across Europe and Asia, including Beauty and Wellness, Fashion and Accessories, Food and Beverage, Media and Entertainment, and Special Retail. L Capital – Europe, founded in 2001 with strong support from LVMH and Groupe Arnault, is Europe’s most established private equity firm specializing in lifestyle brands and selective retail businesses in Europe. Its headquarters are in Paris with offices in Milan, Madrid and London. L Capital – Asia is the largest consumer-focused private equity firm in Asia, with headquarters in Singapore and regional offices in Hong Kong, Shanghai, Mumbai and Melbourne. L Real Estate is a unique developer of mixed use projects anchored by luxury retail, with headquarters in Luxembourg and regional offices in Paris, Hong Kong and Miami. L Capital – Europe’s investments include: Nutrition and Sante, Zanotti, Ba&sh, Sandro and Maje, Gant, Cigierre, and Pepe Jeans & Hackett. L Capital – Asia’s investments include: 2XU, Charles & Keith, Marubi, Bateel, Sasseur, Asiaray Media and Emperor Watch and Jewelry. L Real Estate’s investments include Miami Design District and G6 in Ginza – Tokyo.
LVMH Moët Hennessy Louis Vuitton is represented in Fashion and Leather Goods by a portfolio of brands that includes Louis Vuitton, Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs, Berluti, Nicholas Kirkwood and Loro Piana. Its Wines and Spirits division includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Hennessy, Glenmorangie, Ardbeg, Wenjun, Belvedere, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton et Numanthia.
LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, la Samaritaine and Royal Van Lent. LVMH’s Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Diamond Jewellers Ltd, a joint venture created with the world’s leading diamond group.