LVMH, the renowned French fashion conglomerate, has recently sold the iconic Australian bootmaker R.M. Williams to Australian mining billionaire Andrew Forrest. This transaction signifies the return of ownership of the beloved fashion brand to its home country after being under foreign control for the past six years.
While the exact purchase price remains undisclosed, it has been reported by the Australian Financial Review to be approximately A$190 million. Andrew Forrest, the founder of Fortescue Metals Group Ltd, expressed his pride and humility in acquiring the esteemed brand known for its exceptional Australian craftsmanship and rich heritage.
The decision to sell R.M. Williams was made by LVMH’s investment arm, L Catterton, in 2019, with an estimated valuation of around A$500 million. However, the reported purchase price of A$190 million reflects a substantial decrease from the initial valuation.
In 2014, when L Catterton acquired R.M. Williams, the company was valued at approximately A$104 million. Despite this recent transaction, LVMH has not provided immediate commentary on the sale of the revered Australian brand. The sale of R.M. Williams comes at a challenging time for fashion retailers worldwide, as the industry has been greatly impacted by the COVID-19 pandemic.
During the pandemic, R.M. Williams had to temporarily shut down its Adelaide factory, where it employs 900 staff. Nevertheless, the majority of its 68 retail outlets along the east coast of Australia have now reopened. The struggles faced by R.M. Williams are reflective of the broader challenges experienced by fashion companies under LVMH’s umbrella, such as the Australian swimwear brand Seafolly Pty Ltd, which entered voluntary administration in June due to pandemic-induced sales declines.
For more information on LVMH and its recent sale of R.M. Williams, you can visit the official LVMH website here. Additionally, to learn more about Andrew Forrest and his business ventures, you can explore his company’s website, Fortescue Metals Group Ltd, here.
