Interest in Ferretti’s Riva intensifies as LVMH said to be circling

Rumours continue to swirl about the future of the Ferretti Group as a potential buyout or investment by LVMH, specifically relating to Riva, is seemingly on the cards.

There has been no official confirmation from either Ferretti Group or LVMH although MIN has contacted both. However, adding fuel to the fire, recent acquisitions by LVMH have demonstrated its interest in expanding its luxury portfolio beyond fashion and cosmetics into high-end yachting.

As well as luxury yachts, Riva, a subsidiary of the Ferretti Group, has been pursuing non-boat initiatives in its business and recently announced a new residential tower made up of 36 exclusive apartments to sit alongside its ten-plus Riva Lounges in ‘exclusive destinations for the international jet set’. It’s also got Riva Boutique, which offers a collection of apparel, accessories, collectibles and design objects inspired by the world of boats. And going back to its roots, there’s Riva Classiche, the boat service founded by Carlo Riva in 1957, which provides ongoing assistance to the owners of vintage Riva boats and restores powerboats.

Ferretti Group, which showed an increase in both growth and profitability earlier this year for the first half of 2024, has been investing in the brand. It officially opened its Riva shipyard in La Spezia earlier this year. The refurbishment covered both the production and management sections of the shipyard. When fully operational, the site will make it possible to launch another 30 boats a year of up to 40 metres in length.

In the first six months of 2024, Ferretti Group reported net revenues of €611m from new yacht sales, representing a 7.7 per cent increase compared to the same period in 2023.

LVMH has a history of acquiring luxury brands

Given LVMH’s history of acquiring iconic luxury brands and its deep investments into experiential luxury, such as in travel and hospitality, industry insiders are speculating that acquiring a brand like Riva could align well with LVMH’s brand portfolio.

If the latest acquisition rumour proves true, it would signify a major shift in the luxury marine market and further solidify LVMH’s presence in high-end lifestyle experiences.

LVMH – a family-run French company owned by Bernard Arnault – is said to be the world’s largest luxury goods company with brands such as Dior and Moët & Chandon in its stable.

In 2018, the group acquired Belmond which can – rather facetiously – be described as a super-high-end travel agent of sort, connecting travellers with ‘the world’s most remarkable properties, locations and journeys’. Belmond’s portfolio includes the Venice Simplon-Orient Express (the train service from London to Venice and other European cities). The acquisition established LVMH as a serious player in luxury travel, an industry adjacent to luxury yachting.

LVMH’s strategic partnerships include the Orient Express

Recently, LVMH formed a strategic partnership with Accor to revitalise the Orient Express brand, an iconic name in luxury rail travel, and to introduce luxurious Orient Express sailing ships. This venture will feature ultra-luxury yachts with the same high-end standards synonymous with LVMH’s brand, appealing to wealthy clients seeking exclusive travel experiences at sea. The collaboration with Accor for the Orient Express expansion into ocean voyages marks LVMH’s intent to tap into the affluent travel market by offering unique hospitality and luxury cruise options, thereby creating synergies that could align well with high-end yacht brands like Riva if LVMH were to pursue such acquisitions further in the yachting sector

LVMH’s wider investment into the America’s Cup

Meanwhile, LVMH’s been busy in the America’s Cup, through its subsidiary Louis Vuitton. It was the title partner for the 37th America’s Cup. Louis Vuitton has sponsored the America’s Cup on and off since 1983, and this year saw the introduction of the Orient Express Racing Team.

Although MIN believes LVMH is not directly involved in funding or managing the Orient Express Racing Team, its role as the title partner and creator of key elements like the trophy trunks highlights a strategic connection to the event’s French team and national identity.

This sponsorship emphasises LVMH’s commitment to the fusion of luxury and performance sports, connecting its brand with sailing innovation and high-net-worth events (and people) enabling LVMH to leverage the America’s Cup’s global audience.

LVMH’s strategy for investment with Riva

According to Italian media the strategy of the French, who have reportedly contacted the Chinese shareholders of the group and some Italian partners, could be to acquire the group and then segment it by valorising the brands of greatest interest. Chinese shareholders have repeatedly said in the past that they are available to sell the majority shareholding, which currently represents almost 40 per cent of the capital (37.54 per cent). The other significant shareholders to date are Valea Foundation (13.06 per cent), Danilo Iervolino (5.22 per cent) and Piero Ferrari (4.56 per cent).

Investment bank Intermonte is reported as saying Riva is the brand with the highest value in the Ferretti brand portfolio in terms of product and price positioning, in addition to the possibility (already largely explored) of extending the brand to activities other than yachting.