LVMH, the luxury goods conglomerate, is in discussions to acquire Rapha, the high-end cycling apparel and bike-related accessories brand based in London, according to a report from the Daily Mail.
LVMH, best known as the owner of Louis Vuitton and Moët & Chandon, currently has no sports brands in its extensive portfolio of luxury drinks and fashion labels. But it is reportedly interested in expanding its portfolio into sports and leisure. LVMH’s other brands include Dior, Tag Heuer, Marc Jacobs, Dior and Bulgari.
In 2013, it acquired a 40 percent stake in 2XU, the Australian compression specialists. The French company in October was reported to be in talks to purchase Pinarello, the Italian cycling company dating back to the early 1950s.
In January 2016, LVMH combined its private equity and real estate investment units with U.S.-based private equity firm Catterton. The combined company, L Catterton, counts Pure Barre, Peloton, CorePower Yoga, Sweaty Betty, X2 Performance and 360fly, as well as 2XU, among its investments. LVMH and the investment arm of its chairman and CEO Bernard Arnault own a 40 percent stake in L Catterton.
Rapha was founded in 2004 by former brand consultant Simon Mottram and is headquartered in London. According to the Mail report, Rapha had a pre-tax profit of £1.1 million for the year to January 31, 2016 on revenues of £48.8 million.
Rapha is sold online, in select wholesale accounts and through 14 Rapha Clubhouse locations globally. With 8,000 paid-up members, the Rapha Cycling Club is one of the largest cycling clubs in the world. Rapha spent four years as the official kit provider of Team Sky, a partnership that came to the end of the 2016 season. It also supplies kit for the Canyon-SRAM squad.
Neither LVMH nor Rapha would comment on the takeover report.
Photo courtesy Rapha
