Bernard Arnault
| Bernard Arnault | |
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| Born | 5 March 1949 Roubaix, France |
| Residence | Paris, France |
| Nationality | French |
| Alma mater | École Polytechnique |
| Occupation | Chairman & CEO of LVMH Chairman of Christian Dior S.A. |
| Net worth |  US$ 41 billion (2012)1 |
| Spouse | Hélène Mercier (Pianist) |
| Website | |
| LVMH.com | |
Bernard Arnault (pronounced: [bɛʁnaːʁ aʁno]) (born 5 March 1949) is a French business magnate best known as the chairman and CEO of the LVMH, the largest luxury-products company in the world.234 According to Forbes magazine, Arnault is the world's 4th and Europe's richest person, with a 2011 net worth of US$41 billion.5 He has also been named by Forbes as "the fashion person of 2011".6
In 2007 Arnault was named Commander of the Legion of Honour, France’s highest order. The same year, he was featured in Time magazine’s annual Time 100 issue as one of the 100 most influential people in the world.
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Biography
Education and family life
Bernard Jean Étienne Arnault was born March 9, 1949, in Roubaix. His father Jean Leon Arnault was a manufacturer, owner of a civil engineering company, Ferret-Savinel. After graduating from the Maxence Van Der Meersch High School in Roubaix, Bernard Arnault was admitted to the École Polytechnique (X1969) from which he graduated with an engineering degree in 1971.
Bernard Arnault has been married twice, and is the father of five children. As the director for LVMH, his daughter Delphine Arnault is actively involved in the management of the luxury group. His son Antoine Arnault is Head of Communications for Louis Vuitton. His second wife, Hélène Mercier, is a pianist from Quebec. The couple has three sons. His nephew Harry Seaman is also involved in LVMH, overseeing sales and he is currently researching in the U.K.
Bernard Arnault was a witness at President Nicolas Sarkozy's wedding to Cécilia Ciganer-Albéniz. In January 2007 Kathryn Blair, the daughter of former British Prime Minister Tony Blair, completed an intensive French language and culture course at France's Sorbonne University. Tony Blair has been criticised for accepting an invitation on her behalf from Bernard Arnault. During Kathryn Blair's course, which ran from 12 October 2006 to 26 January 2007, she is thought to have been provided with an accommodation, security and transport package worth around £80,000.7
Férinel
After graduation, in 1971, he joined his father's company. In 1976, he convinced his father to liquidate the construction division of the company for 40 million French francs, and to change the focus of the company to real estate. Using the name Férinel, the new company developed a specialty holiday accommodation. Named director of company building in 1974, he became CEO in 1977. In 1979, he succeeded his father as president of the company. In 1981, Bernard Arnault emigrated to the United States and created Ferinel Inc. which developed condominiums in Florida.8
Christian Dior
Three years later, when the French Socialists switched to a more conservative economic course, Bernard Arnault returned to France and became the CEO of Financière Agache, a luxury goods company. With the help of Antoine Bernheim, a senior partner of Lazard Frères et Cie., the Paris office of Lazard Frères & Co., and government subsidies conferred in exchange for a promise not to downsize, Bernard Arnault acquired Boussac, a textile company in turmoil. Boussac owned Christian Dior, the department store Le Bon Marché, the retail shop Conforama and the diapers industrial Peaudouce. The Arnault family put up just $15 million of their own money, with Lazard supplying the rest of the reported $80 million purchase price.9 Following receipt of about 2 billion francs from the state in exchange of the promise to safeguard 16,000 jobs in the group, Bernard Arnault sent a letter to Laurent Fabius. In the letter he stated: “I will personally handle the management of DBSF and I will proceed to the setting up of the industrial and social plan as it was communicated to the administration.” Bernard Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior brand, and Le Bon Marché department store.10 In 1987, the group had to refund a part of the 51,5 million Euros it had benefited. These procedures did not reach Bernard Arnault who focused on Christian Dior’s development and on his acquisitions in the luxury sector (he became CEO of Christian Dior in 1985 and gathered the perfume and fashion departments in 1989).
LVMH
In 1987, shortly after the creation of LVMH, the new luxury group resulting from the merger between two companies, Mr Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henri Racamier, president of Louis Vuitton. Moët Hennessy held Moët & Chandon Champagne, Ruinart Champagne, Champagne Mercier, Canard-Duchêne and Hennessy cognac. Louis Vuitton was the owner of Louis Vuitton Malletier, Givenchy, Veuve Clicquot Ponsardin Champagne. The new group held property rights to Dior perfumes, which Bernard Arnault craved to incorporate into Dior Couture. He created a holding company of which he owned 60% and Guinness, who had a distribution agreement with Moët-Hennessy, owned 40%. Following the October 1987 stock market crash, he capitalized on the lower quoted price and soon owned 43% of LVMH. In 1988, the group was looking for other investors. Henri Racamier, CEO at that time, asked Bernard Arnault to invest in the company. With more than 25% of shares, Bernard Arnault became one on the main shareholders of the group.
During this period, the management met difficulties because of the differences of view regarding the group’s strategic choices. Alain Chevalier was considering the sale of the wine and spirits department to other groups, whereas minor shareholder Henri Racamier wanted to restore Louis Vuitton’s independence. In this context, Bernard Arnault believed the group had to follow a unique direction and tried to take the leadership of LVMH. To take the control of the group, Bernard Arnault launched a takeover bid. In July 1988, he became LVMH’s first shareholder and, with the help of Lazare Bank and Crédit Lyonnais, majority shareholder in January 6, 1989. Alain Chevalier left the group and on the January 13th 1989, Bernard Arnault was unanimously elected chairman of the executive management board. Henri Recamier tried to cancel Bernard Arnault takeover bid.11 However, on 16 May 1989, French stock market regulator legitimated the operation.
He then consolidated his position by purging executives from both companies and declared himself linchpin for the group’s future. He also appointed his father Jean Leon Arnault Chairman of the Supervisory board before officially taking over as Chairman & CEO in 1989.12
Since then, Bernard Arnault led the company through an ambitious development plan, turning it into one of the largest luxury groups in the world, alongside Swiss luxury giant Richemont and French based PPR Group. In eleven years, LVMH value has been multiplied by fifteen. In the meantime, the sales and profit progressed by 500%. Bernard Arnault promoted the decisions decentralization concerning the brands of the group. The brands are now considered as firms with their own familial history.
Bernard Arnault thinks LVMH has “shared advantages”: the strongest brands help financing those that are growing. Bernard Arnault has a portfolio of major brands from the luxury sector for which the stability is secured. This solidity allows new acquisitions and the group development. Thanks to this strategy, Christian Lacroix could open his own fashion house.
In July 1988, Bernard Arnault acquired Céline. In 1993, LVMH acquired Berluti and Kenzo. In the same year, Bernard Arnault bought out the French economic newspaper La Tribune. He could not turn it around, in spite of the 150 million Euro of investment. He sold La Tribune in November 2007 in order to buy the other French economic newspaper Les Échos, for 240 million Euros.
In 1994, LVMH acquired the perfume firm Guerlain. In 1996, Bernard Arnault bought out Loewe and it was followed by Marc Jacobs and Sephora in 1997. Were also integrated to the group: Thomas Pink in 1999, Emilio Pucci in 2000 and Fendi, DKNY and La Samaritaine in 2001.
Among other companies, Arnault also owned the art auction house Phillips de Pury & Company from 1999 to 2003.13 He also bought out the first French auctioneer Tajan.14
Between 1998 and 2001, he had a passion for new economy and invested in boo.com, Libertysurf and Zebank through his holding Europatweb. The March 2000 Internet krash and 9/11 attacks convinced him to leave the sector.
In the 1990s, Bernard Arnault decided to gather his activities in a unique building in New York in order to symbolize LVMH’s strength and grandeur in the United States. He chose Christian de Portzamparc15 to realize this project, in which he also committed himself.16 On December 8, 1999, LVMH tower was unveiled in front of Hillary Clinton.17
In 2005, he became the richest man in France. According to the Forbes list of Billionaires 2006, he pushed in front of his fellow-countrywoman Liliane Bettencourt, with a $30 billion fortune.
In 2007, he acquired 10.69% of France's largest supermarket retailer and the world's second largest food distributor, Carrefour through his Blue Capital, which is jointly owned by California property firm Colony Capital.
In 2008, he invested into the yacht business and bought Princess Yachts for 253 million Euros. He then took control of Royal van Lent for an almost identical sum.18
Arnault's main business competitors are:
- French businessman François-Henri Pinault, whose holding company PPR owns Gucci, Yves Saint Laurent, Stella McCartney, Sergio Rossi, Bottega Veneta, Boucheron, Roger & Gallet, Bédat & Co and Christie's.
- Swiss-based Richemont, which owns Cartier, Van Cleef & Arpels, Net-a-Porter, Piaget, Baume et Mercier, IWC, Jaeger-LeCoultre, A. Lange & Söhne, Officine Panerai, Vacheron Constantin, Dunhill, Lancel, Montblanc, Old England, Purdey, Chloé, and Shanghai Tang.
Patronage
Mr Arnault is a noted art collector. To develop his patronage actions, Bernard Arnault appealed to Jean-Claude Claverie, Jack Lang’s former counsellor in French Ministry of Culture. Thanks to their impulse, LVMH became a major agent in French patronage.
The group supported about ten exhibitions as “Le grand monde d’Andy Warhol”19 and “Picasso et les maîtres”20 at le Grand Palais in Paris. LVMH also endorsed the patronage of “l’atelier d’Alberto Giacometti” and “Yves Klein” at Centre Georges Pompidou.
In addition, LVMH foundation created the “young creators LVMH award”, an international competition opened to French and international beaux-arts students.21 Each year, six grants are allocated to the winners.
The group also lends Stradivarius violins to young talented musicians. Maxim Vengerov and Laurent Korcia already the loan of instruments.
Following the example of business man François Pinault, he created in 2006 a Louis Vuitton foundation for contemporary art. Designed by Frank Gehry, the construction of the foundation should open at the Jardin d'acclimatation in 2013.22
Awards
Bernard Arnault received the title of Commander of the French Legion of Honour on February 10, 2007. He was promoted to the dignity of Grand Officer of the French Legion of Honour on 14 July 2011.23
See also
References
- ^ "Forbes topic page on Bernard Arnault. Accessed March 2011". Forbes. http://www.forbes.com/billionaires/gallery/bernard-arnault#gallerycontent. Retrieved 31 May 2011.
- ^ Gumbel, Peter (26 April 2004). "Bernard Arnault". TIME. http://www.time.com/time/magazine/article/0,9171,993989,00.html. Retrieved 31 May 2011.
- ^ Fendi.com
- ^ Galloni, Alessandra (5 March 2009). "Being LVMH's Bernard Arnault – WSJ. Magazine – WSJ". The Wall Street Journal. http://magazine.wsj.com/features/the-big-interview/being-arnault/. Retrieved 31 May 2011.
- ^ "Bernard Arnault". Forbes. http://www.forbes.com/profile/bernard-arnault. Retrieved 31 May 2011.
- ^ . http://www.forbes.com/sites/andersonantunes/2011/12/14/fashions-person-of-the-year-is-bernard-arnault-of-course-2//.dead link
- ^ "Cherie's pride at her graduate girl (...and the Blairs managed to negotiate a freebie, too)", Gordon Rayner and Peter Allen, Daily Mail, 12 February 2007
- ^ The Luxurious Empire of Bernard Arnault Business new Network, April 2010
- ^ "Bernard Arnault – Learning the Family Business". Referenceforbusiness.com. http://www.referenceforbusiness.com/biography/A-E/Arnault-Bernard-1949.html. Retrieved 31 May 2011.
- ^ "Un portrait de Bernard Arnault censuré par Laurent Joffrin". Acrimed.org. http://www.acrimed.org/article3437.html. Retrieved 31 May 2011.
- ^ Disparition d'Henry Racamier, l'un des fondateurs de LVMH,Les Echos, n° 18878 du 01 Avril 2003
- ^ L'accès à la puissance économique de Bernard Arnault (1974-1989), Magazine Gérer et Comprendre, juin 2004, n°76, p.62
- ^ "Phillips de Pury & Company". Phillipsdepury.com. http://www.phillipsdepury.com/about-us.aspx. Retrieved 31 May 2011.
- ^ Aymeric Mantoux, Voyage au pays des ultra-riches, Éditions Flammarion Capital, 2010, ISBN 978-2-8104-0287-8, page 85.
- ^ Vidéo d'une conférence donnée par Christian de Portzamparc, Pavillon de l'Arsenal, 29 février 2000
- ^ Tour de France a New York. Signé Portzamparc, le nouveau siège américain de LVMH marque le retour dans la «Grosse Pomme» d'une architecture audacieuse, Libération.fr, 13 décembre 1999
- ^ Designing The Nouveau Building On the Block, The New-York Times, le 15 décembre 1999
- ^ Aymeric Mantoux, Voyage au pays des ultra-riches, Éditions Flammarion Capital, 2010, ISBN 978-2-8104-0287-8, page 45.
- ^ Présentation de l’expo Warhol Rmn.fr
- ^ LVMH, mécène de l’exposition Rmn.fr
- ^ Prix LVMH des jeunes créateurs Artefact Paris
- ^ Fondation Louis Vuitton pour la création : Pas avant 2013 France-Amérique, le 24 juin 2011
- ^ « Bernard Arnault élevé à la dignité de Grand officier » Zone Bourse.com, 15 juillet 2011
External links
- Being LVMH's Bernard Arnault- Profile story from WSJ Magazine
- A Guide to the Principal Holdings of Bernard Arnault also in WSJ Magazine
- New York Times, May 15, 2005
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