Will Ralph Lauren take a trip to Paris?

Could the iconic Polo Bear be taking a trip to Paris? LVMH Moet Hennessy Louis Vuitton SE has held exploratory talks with Ralph Lauren Corp over the past two years, US news site Axios.
Both companies declined to comment. But LVMH acquiring the US line has merits, even if dressing up Ralph Lauren’s preppy chic will be harder than polishing Tiffany’s diamonds.
In luxury, a world dominated by family-controlled companies, sizable acquisition opportunities are few and far between. Ralph Lauren is no exception. Founder, Chairman and Chief Creative Officer Ralph Lauren controls about 79% of the firm, and he has given no indication that he is looking for an exit. But if he is thinking of succession, selling to LVMH means entrusting his brand to the world’s biggest high-end group to be developed for decades to come.
With Ralph Lauren (the company) having a market capitalisation of about $9 billion, LVMH, whose own value is about $360 billion, could easily afford a deal at the typical 30% takeover premium, or even at 50%. Such an agreement would mean LVMH founder and CEO Bernard Arnault gets to bring a second American icon into the fold. He took control of Tiffany early last year. Ralph Lauren would also increase LVMH’s US sales, which stood at 26% of overall revenue in 2021, a year when the American luxury market’s growth outpaced that of China.
Ralph Lauren’s longevity — it was created in 1967 — makes it akin to a heritage name, which LVMH excels at updating. It was also one of the first lifestyle brands, having expanded into home furnishings and hospitality before it was fashionable. The wood-paneled country club feel of its flagship stores could easily be extended into luxury hotels, an area that LVMH is developing.

—Bloomberg