LVMH and Ralph Lauren: A Potential Merger on the Horizon

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After LVMH bought over TiffanyAndCo last month, it is rumoured to consider RalphLauren next. Learn more here.

mentioned that Ralph Laurent “sells for a multiple of EBITDA of less than 9x while LVMH sells for just under 16x”. Including Ralph Laurent’s earnings to LVMH will only increase the latter’s stock prices, which means the acquisition will be an accretive deal.

Should a deal come into fruition, it would further cement LVMH’s position within the US market. It has already started to make inroads into this crucial market through Tiffany, and adding Ralph Laurent will allow LVMH to take point into two critical categories: Jewellery and Fashion. This will propel the group’s position further up compared to its competitors like Kering and

 

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