Image by AFP.
LVMH Moët Hennessy Louis Vuitton announced today that it will buy a controlling stake in Heng Long, a supplier of fine crocodile leather.
The French brand offered $160.8 million for the Singapore-based tannery, paying $0.60 each for all 268 million shares of the company.
Key Heng Long shareholders have agreed to sell their stakes totaling 73.7%; Heng Long management will then reinvest $69.5 million in a joint venture where LVMH and Heng Long maintain ownership stakes of 51% and 49%, respectively.
The fourth-generation family business sources and processes crocodilian skin for high-end handbags, watchstraps, shoes, garments, belts and wallets. Its products go to Europe, Asia, America, Africa and Australia; it also supplies raw crocodile and other exotic skins specifically to Japan, China and Thailand.
A statement from LVMH called the deal "an excellent fit between two partners who share demanding standards for sustainable development and conservation of wildlife species."
LVMH has said it will retain Heng Long's current management.
Follow me on Twitter: @HannahElliott
