Paris—With fashion and leathergoods accounting for about 37% of its total sales of nearly 24 billion euros, LVMH is making sure it can supply its luxury brands with top quality leathers and other materials.
In its latest move to acquire key suppliers, LVMH said last week that it has taken over Les Tanneries Roux, a Romans-sure-Isere-based leather supplier. Terms and the sale price were undisclosed.
Jean-Claude Ricomard, chairman of the company, will remain to “ensure that the company’s successful growth strategy over many years will continue.”
Founded in 1803, Les Tanneries Roux is known for its high quality leathers and has become a leading source for the smooth and supple calf skins found in leathergoods at Louis Vuitton, Christian Dior, Loewe, Céline and Moynat.
“These leathers are carefully produced by its highly trained, successful and motivated teams supported by the business’ efficient organizational structure,” said LVMH, which has been buying from Tanneries Roux for more than 20 years.
Last October, LVMH paid 92 million euros for a 51% stake in Singapore-based Heng Long International Ltd., one of the leading global suppliers of crocodile skins. And in 2009, LVMH established Les Tanneries de la Comète SA in a joint venture partnership with Tannerie Masure.
LVMH’s stake in Heng Long was seen in some quarters as a challenge to Hermès which has sourced most of its exotic skins from Hen Long. LVMH took a 22.3% stake in Hermès, too, which prompted the company’s founding families to form a holding company to fend off any possible takeover by LVMH.