Why is LVMH Acquiring Major Stakes in Two Spanish Tanneries Riba Guixà & Verdeveleno Within a Year?

The luxury conglomerate LVMH, through its division LVMH Métiers d'Art, has acquired an 80% stake in the Catalan Tannery. This acquisition aims to ensure the continuity and viability of the family-owned business by safeguarding its operational processes.
Why is LVMH Acquiring Major Stakes in Two Spanish Tanneries Riba Guixà & Verdeveleno Within a Year?

In a strategic move to ensure the continuity and quality of its artisanal products, the French luxury conglomerate LVMH has acquired an 80% stake in the Catalan tannery Riba Guixà. This operation, carried out through its division LVMH Métiers d’Art, reinforces the group’s commitment to craftsmanship and the preservation of traditional techniques in the luxury industry.

LVMH, known for its extensive portfolio of luxury brands, had already entered Riba Guixà’s cap table in 2015, acquiring an initial 20% stake.

With this new acquisition, the company aims to guarantee production processes and the survival of the family-owned business, thereby ensuring the continuity of the artisanal quality that characterizes its products. This purchase is part of a broader strategy by LVMH to consolidate its presence in the artisanal sector in Spain and other key markets.

The acquisition of Riba Guixà is not an isolated event but part of a series of strategic moves that LVMH has made in Spain. Last September, the French conglomerate also acquired a majority stake of 55% in the Valencian tannery company Verdeveleno, specializing in exotic skins.

This purchase highlights the growing importance of the Spanish tannery industry for LVMH, which has set its sights on Spanish leather as an essential component of its supply chain.

LVMH Métiers d’Art, the division dedicated to craftsmanship within the group, was launched in 2015 with the aim of ensuring sourcing and preserving artisanal skills within the luxury industry.

The initial entry into Riba Guixà marked the beginning of this division, which has since acquired over a dozen workshops and farms specialized in various materials, from textiles in Japan to manufacturing in Italy and metals in France.

Riba Guixà was founded in August 1932 by Joan Riba Guixà, Since then it has maintained a strong tradition of craftsmanship over four generations. Since the 1980s, the company has been a supplier to prestigious international brands, standing out as one of Spain’s leading traditional tanneries.

Riba Guixà’s integration into LVMH Métiers d’Art marks a significant milestone, being the first traditional Spanish company to be part of this division of excellence trades.

LVMH’s presence in Spain extends beyond Riba Guixà. The French group operates four factories and employs nearly 1,200 people in Catalonia, mainly dedicated to leather goods and Louis Vuitton logistics. Additionally, the artisanal production of some of its luxury items takes place in Ubrique, Spain, globally recognized as a leather goods hub.

The purchase of Riba Guixà and Verdeveleno is part of a broader trend in the luxury industry. In recent years, major conglomerates in the sector have adopted the strategy of acquiring historic factories and artisan workshops to preserve their future and guarantee excellence in their value chain.Chanel started this trend almost two decades ago, and since then, other luxury giants like LVMH have followed suit.

In 2019, the consulting firm KPMG and the Spanish luxury business association Círculo Fortuny published a report highlighting the importance of Spanish craftsmanship.According to the report, craftsmanship generated €6.049 billion for the national economy, with over 64,000 companies and 200,000 workers involved in this sector.

This landscape reinforces LVMH’s decision to invest in Spanish artisanal companies, thus ensuring the continuity of these traditions and the quality of its products.LVMH’s acquisition of Riba Guixà not only ensures the continuity of a family-owned company with almost a century of history but also strengthens Spain’s position in the global tannery industry.

By integrating Riba Guixà into its Métiers d’Art division, LVMH not only preserves traditional techniques but also drives innovation and sustainability in its production processes. Tanning is a craft that requires a high level of skill and technical knowledge. With the acquisition of Riba Guixà, LVMH ensures that these skills will be maintained and passed on to future generations.

Additionally, this integration allows LVMH to offer leather products of the highest quality, meeting the growing demand from consumers for artisanal and sustainable products.

In conclusion, the acquisition of an 80% stake in Riba Guixà by LVMH underscores the conglomerate’s commitment to preserving craftsmanship and the quality of its products. This strategy, which includes integrating artisanal companies into its Métiers d’Art division, allows LVMH not only to secure its supply chain but also to support the continuity of traditional crafts and sustainability in the luxury industry. With each new acquisition, LVMH strengthens its position as a leader in the sector, ensuring that artisanal techniques remain alive and that its products continue to be synonymous with excellence and exclusivity.

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