Covid-19-hit 2020’s biggest luxury brand deals: Chanel bought Italian shoemaker Ballin; VF, the US owners of The North Face, acquired Supreme, and LVMH bagged a ‘bargain’ on Tiffany & Co.

Dec 29 , 2020

LVMH chairman and chief executive, Bernard Arnault, flip-flopped on his previously agreed Tiffany & Co. deal earlier this year, eventually purchasing the company at a lower price. Photo: AFP

Covid-19 shook up the fashion world, prompting major companies like Alibaba and Richemont to invest in luxury e-commerce platform Farfetch and Moncler to buy designer sportswear brand Stone Island, among others

A ghastly year dominated by Covid-19 has been felt far and wide, especially by the fashion industry. In addition to the numerous luxury brands that have been forced to close, there has also been widespread consolidation of the industry through acquisition, with brands coming to the conclusion that they’re stronger together in a challenging market. From movers and shakers like LVMH’s Tiffany deal, to Alibaba and Richemont’s investment in Farfetch, here are some of the biggest luxury deals from the year.

LVMH acquired Tiffany & Co. for US$15.8 billion

Tiffany & Co.’s headquarters on 5th Avenue in Manhattan, New York City. Photo: AFP

The biggest deal of the year was in fact announced back at the end of 2019, but didn’t go through until October 2020. After striking the initial deal, the two sides fell out with each other and spent the following year arguing over, well, essentially everything, even suing each other after LVMH declared that Tiffany was no longer worth what it had bid. In the end, LVMH bought the storied New York jeweller for around US$425 million less than originally agreed.

Puig bought Dries Van Noten

Belgian designer Dries Van Noten at a fashion show in 2017. Photo: Reuters

A majority stake in ultra-chic Belgian label Dries Van Noten was bought in June for an undisclosed price by Spanish group Puig, which has a background in fragrance, but also owns brands including Jean Paul Gaultier, Carolina Herrera and Nina Ricci.

Ann Demeulemeester sold; Alibaba and Richemont took stakes in Farfetch

Meanwhile the fashion house of Ann Demeulemeester – coincidentally another member of the so-called Antwerp Six group of influential avant garde designers – was acquired by Antonioli in September, again for an undisclosed sum. The company is owned by retail entrepreneur Claudio Antonioli, the founder of fashion holding company New Guards Group, which controls Off-White and Palm Angels. New Guards was sold to luxury e-commerce retailer Farfetch for a total of US$675 million in 2019. Farfetch itself also received a US$1.15 billion mega-investment from Chinese tech giant Alibaba and Swiss luxury goods company Richemont in November.