LVMH is reportedly pondering with Ralph Lauren about a possible acquisition that could potentially see the luxury conglomerate buy the US fashion brand.
The news supposedly comes as founder, chairman and chief creative officer of the brand, Ralph Lauren, has been considering succession plans for the business.
According to several sources linked to the news site, Axios, “exploratory discussions” have been underway for a couple of years already.
Potential to be one of the largest apparel deals of all time
If agreed upon, the Ralph Lauren group, which currently has an enterprise value of just under eight million dollars, would secure LVMH’s place in the US with one of the largest apparel acquisition deals of all time.
While the French group has remained hesitant about acquiring large US brands in the past, its purchase of Tiffany & Co. last year, and the success that has amounted from it, has possibly made LVMH more confident.
Following the acquisition of Tiffany, which was settled in a 15.8 billion dollar deal, the jewellery firm has revamped its image to attract younger buyers, enlisting big celebrity names as its ambassadors; most recently, Jay-Z and Beyoncé.
The deal added to LVMH’s already sizable portfolio of 75 brands, counting the likes of Louis Vuitton, Dior, Celine and Givenchy among them.
LVMH declined to comment while Ralph Lauren has not yet responded to FashionUnited's request for comment.