In a statement posted on January 31, Marcolin says it will set up a joint manufacturing and design venture with LVMH (Moett Hennessey Louis Vuitton), a French luxury goods group.
Marcolin will begin making eyewear for the Celine and Louis Vuitton brands in 2018, becoming the group’s “preferred partner in the eyewear business,” according to the Marcolin statement.
According to the statement, “LVMH and the Company will control, respectively, 51 percent and 49 percent of the share capital of the proposed JV. In total, we estimate our equity contributions to the start-up costs, capital expenditures and working capital requirements of the JV will be between €20 million and €25 million over the course of the next four to five years, of which we expect to fund approximately €7 million in 2017.”
The joint venture is contingent on approval by EU anti-trust authorities.
Infoclip had previously posted on January 23, that LVMH intentions were expected to be made known in the coming weeks.
Read the complete press release HERE.
