LVMH Moët Hennessy Louis Vuitton SA is close to a deal to take a large stake in Edun, the ecologically and socially conscious fashion line backed by singer Bono and his wife Ali Hewson, according to a person familiar with the matter.
The deal, under which LVMH would take a nearly 50% stake in Edun, could be announced as early as Thursday, though it could take several days to work out final details, this person said. Under the arrangement being discussed, LVMH, while remaining a minority shareholder, would also be involved in managing the company, the person added.
Edun, which was founded in 2005, specializes in organic-cotton fashions that are manufactured in developing countries including India, Peru, Kenya and Uganda. The company's mission is to promote trade as a way to boost communities and to encourage other entrepreneurs to do business in developing countries, particularly in Africa.
An equity investment by LVMH would allow Edun to expand further by giving it access to the marketing, management and production resources of the world's largest luxury-goods firm. Value of the investment couldn't be immediately learned.
Edun Chief Executive Officer Christian Kemp-Griffin declined to comment.
For LVMH, whose brands include fashion house Louis Vuitton, Dom Perignon champagne and Hublot watches, the Edun investment would mark a foray into the growing market for fashion businesses that have ecological and ethical goals.
Partly because of its large presence in emerging markets -- and diversification across product lines -- LVMH is expected to weather the industry's worst downturn in years better than many of its smaller rivals.via: onlinejs