Loro Piana Brothers Emerge as Billionaires After Selling Italian Cashmere
Loro Piana SpA's, an Italian cashmere clothier, 80% shares were sold to LVMH Moet Hennessy Louis Vuitton SA. Sergio and Pier Luigi Loro Piana were the brothers who led Loro Pian SpA. They emerged as billionaires after receiving Eur2 billion equivalent to US$2.57 billion from LVMH.
The acquisition was still laid open for the competition authorities' consent. The agreement would give the Italy-headquartered Loro Piana, Quarona, a Eur2.7 billion enterprise value. The enterprise value was described as market capitalization plus debt minus cash.
LVMH said that the Loro Piana brothers would keep hold of the remaining 20% of the business.
"LVMH has proved that it respects and nurtures family businesses and is most likely to respect the values and traditions of our maison," the brothers stated.
As said by Bloomberg Billionaires Index, Sergio and Pier Luigi's net worth was at least US$1 billion each. This was based on their individual shares in Loro Piana and after-tax earnings from the sale.
Loro Piana's spokesperson verified that the company was completely family-owned until LVMH acquired it.
Join the Conversation