LVMH, through its private equity firm L Catterton, acquires a stake in Value Retail for $1.94 billion

The luxury giant LVMH, through its private equity firm L Catterton, has acquired a stake in Value Retail, the company that owns nine luxury shopping villages in Europe, for a total of $1.94 billion. This deal will allow LVMH to expand its presence in the luxury retail market.

Hammerson, the seller, will receive $775 million in cash. Hammerson has described this transaction as an opportunity to reduce its net debt and reinvest in higher-yielding assets in key markets, as well as to buy back shares worth up to £140 million, representing 10% of its current market capitalization.

Value Retail is known for its shopping villages that offer luxury products at reduced prices, attracting both tourists and local customers. These shopping centers, which include places like Bicester Village in the UK and Las Rozas Village in Spain, have seen significant growth in sales and customer traffic post-pandemic.

This acquisition not only strengthens LVMH’s portfolio in the retail sector but also offers synergies with other LVMH brands, such as Sephora and Le Bon Marché, enabling greater integration of its luxury shopping experiences in the reduced-price channel.

Michael Chu, co-CEO of L Catterton, expressed his enthusiasm for the deal, highlighting the growth potential and continued success of Value Retail due to its high quality and reputation in the luxury market.

This transaction reflects LVMH’s strategy to consolidate its leadership in the luxury sector and to seize opportunities that offer significant long-term value.