Financière Agache

Financière Agache SA is an investment holding company based in Paris that is the controlling shareholder of Dior and LVMH. It is controlled by Agache SCA, a company owned by Bernard Arnault and his family.

Financière Agache acts as a family office for the Arnault family and also holds a portfolio of diversified financial investments.

History

The origins of Financière Agache can be traced back to Agache-Willot-Boussac, a French group that dealt in retailing, fashion and manufacturing. Formed from a series of mergers and acquisitions, it owned assets such as Dior, Conforama and Le Bon Marché. It also was close to bankruptcy in the early 1980s.

In 1984, Bernard Arnault, then a young real estate developer had just returned to France from the United States and had heard that the French government was set to choose someone to take over Agache-Willot-Boussac. During his time in New York, Arnault was neighbour to John Kluge who made billions by taking his company Metromedia private and then liquidating it and had also watched the success KKR had with its leveraged buyouts. Arnault won the bidding war for Agache-Willot-Boussac using his family's money as well as backing by Lazard. It was then renamed to Financière Agache.

Financière Agache underwent significant restructuring. Arnault acquired the nickname 'The Terminator' after he laid off 9,000 workers in two years and sold most of the group's assets, with the exception of Dior.

Using the profits from selling assets, Arnault helped bring Louis Vuitton and Moët Hennessy together to form LVMH. In 1989, using Lazard's help once more (which held 10% in Financière Agache at the time), Arnault and Financière Agache were able to gain full control over LVMH.

Using Financière Agache as a platform, Arnault led an aggressive expansion to create the world's biggest luxury conglomerate. Brands acquired included Loewe, Sephora, Marc Jacobs, and Celine. Financière Agache also funded Christian Lacroix.

Financière Agache was controlled by Groupe Arnault, a company owned by Arnault. In December 2020, Groupe Arnault changed it name to Agache.

In July 2022, Arnault changed the legal structure of Agache from a Societas Europaea to a joint-stock partnership to ensure family control over LVMH in the long term.

In June 2024, Frédéric Arnault was named managing director of Financière Agache.

Investment operations

Financière Agache issues bonds for financing and acquisition purposes.

Since the 1990s, Arnault has invested in technology companies through his family office. These include Netflix, Spotify and Airbnb.

In January 2016, Catterton, LVMH, and Financière Agache partnered to create private equity firm L Catterton. Notable investment include Birkenstock, Jio Platforms and Norwegian Cruise Line Holdings.

In 2017, Aglaé Ventures was established as a venture capital firm under Financière Agache.

In May 2020, Financière Agache acquired 27% stake in Lagardère Capital, the personal holding company of Arnaud Lagardère. In September 2021, Financière Agache sold its entire stake for a 9.97% stake in Lagardère Group.

In April 2021, Financière Agache co-sponsored a SPAC named Pegasus Europe which raised €483 million. However a target could not be found and it was terminated in April 2023.

References

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Dior
LVMH
Conglomerate companies established in 1984
Conglomerate companies of France
Family offices
Financial services companies established in 1984
French companies established in 1984
Holding companies established in 1984
Holding companies of France
Investment management companies of France