Bernard Arnault
Encyclopedia
Bernard Arnault (born 5 March 1949) is a French business magnate
who is best known as the chairman and CEO of the French conglomerate
LVMH
. According to Forbes Magazine, Arnault is the world's 4th and Europe's richest person, with a 2011 net worth of US$41 billion.
. After graduating from the Maxence Van Der Meersch High School, Arnault was admitted to the École Polytechnique
(X1969) from which he graduated with an engineering degree in 1971. After graduation, Arnault 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
. In 1979, he succeeded his father as president of the company.
When Socialist François Mitterrand
was elected President of France in 1981, Arnault emigrated to the United States and created Ferinel Inc. Through this vehicle, Arnault undertook construction activity in the United States, developing an apartment complex in limited partnership form in West Palm Beach, Florida, which defaulted on its mortgage shortly after its completion. The equity investors lost their entire investment and bondholders who had financed the project lost most of their money as well. He was not particularly successful in the United States. Three years later, when the French Socialists switched to a more conservative economic course, 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, Arnault acquired Boussac, a textile company in turmoil. The Arnault family put up just $15 million of their own money, with Lazard
supplying the rest of the reported $80 million purchase price. Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior
brand, and Le Bon Marché
department store.
In 1987, shortly after the creation of LVMH, Mr Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henri Racamier, president of Louis Vuitton
. The new group held property rights to Dior perfumes, which 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. He then consolidated his position by purging executives from both companies including appointing his father Jean Leon Arnault Chairman of the Supervisory board before officially taking over as Chairman & CEO in 1989.
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.
He has since then 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
.
Among other companies, Arnault also owned the art auction house Phillips de Pury & Company
from 1999 to 2003.
is actively involved in the management of LVMH. His second wife, Hélène Mercier, is a pianist from Quebec
. His nephew Harry Seaman is also involved in LVMH, overseeing sales and he is currently researching in Australia.
Mr Arnault is a noted art collector. Following the example of business man François Pinault
, he created a Louis Vuitton foundation for contemporary art. Designed by Frank Gehry
, the construction of the foundation should open at the Jardin d'acclimatation
in 2012.
Arnault was a witness at President Nicolas Sarkozy
's wedding to Cécilia Ciganer-Albéniz
. He was also awarded the French Legion of Honour
.
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.
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
who is best known as the chairman and CEO of the French conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
LVMH
LVMH
LVMH Moët Hennessy • Louis Vuitton S.A., better known as LVMH, is a French multinational luxury goods conglomerate headquartered in Paris, Île-de-France, France. The company was formed after the 1987 merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger...
. According to Forbes Magazine, Arnault is the world's 4th and Europe's richest person, with a 2011 net worth of US$41 billion.
Education and business career
Arnault was born in RoubaixRoubaix
Roubaix is a commune in the Nord department in northern France. It is located between the cities of Lille and Tourcoing.The Gare de Roubaix railway station offers connections to Lille, Tourcoing, Antwerp, Ostend and Paris.-Culture:...
. After graduating from the Maxence Van Der Meersch High School, Arnault was admitted to the École Polytechnique
École Polytechnique
The École Polytechnique is a state-run institution of higher education and research in Palaiseau, Essonne, France, near Paris. Polytechnique is renowned for its four year undergraduate/graduate Master's program...
(X1969) from which he graduated with an engineering degree in 1971. After graduation, Arnault 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
Lodging
Lodging is a type of residential accommodation. People who travel and stay away from home for more than a day need lodging for sleep, rest, safety, shelter from cold temperatures or rain, storage of luggage and access to common household functions.Lodgings may be self catering in which case no...
. In 1979, he succeeded his father as president of the company.
When Socialist François Mitterrand
François Mitterrand
François Maurice Adrien Marie Mitterrand was the 21st President of the French Republic and ex officio Co-Prince of Andorra, serving from 1981 until 1995. He is the longest-serving President of France and, as leader of the Socialist Party, the only figure from the left so far elected President...
was elected President of France in 1981, Arnault emigrated to the United States and created Ferinel Inc. Through this vehicle, Arnault undertook construction activity in the United States, developing an apartment complex in limited partnership form in West Palm Beach, Florida, which defaulted on its mortgage shortly after its completion. The equity investors lost their entire investment and bondholders who had financed the project lost most of their money as well. He was not particularly successful in the United States. Three years later, when the French Socialists switched to a more conservative economic course, 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
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
conferred in exchange for a promise not to downsize, Arnault acquired Boussac, a textile company in turmoil. The Arnault family put up just $15 million of their own money, with Lazard
Lazard
Lazard Ltd is the parent company of Lazard Group LLC, a global, independent investment bank with approximately 2,300 employees in 42 cities across 27 countries throughout Europe, North America, Asia, Australia, Central and South America...
supplying the rest of the reported $80 million purchase price. Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior
Christian Dior
Christian Dior , was a French fashion designer, best known as the founder of one of the world's top fashion houses, also called Christian Dior.-Life:...
brand, and Le Bon Marché
Le Bon Marché
Le Bon Marché is the name of one of the best known department stores in Paris, France. It is sometimes regarded as the "first department store in the world". Although this depends on what is meant by 'department store', it may have had the first specially designed building for a store in Paris...
department store.
In 1987, shortly after the creation of LVMH, Mr Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henri Racamier, president of Louis Vuitton
Louis Vuitton
Louis Vuitton Malletier – commonly referred to as Louis Vuitton , or shortened to LV – is a French fashion house founded in 1854 by Louis Vuitton. The label is well known for its LV monogram, which is featured on most products, ranging from luxury trunks and leather goods to ready-to-wear, shoes,...
. The new group held property rights to Dior perfumes, which Arnault craved to incorporate into Dior Couture.
He created a holding company of which he owned 60% and Guinness
Guinness
Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James's Gate, Dublin. Guinness is directly descended from the porter style that originated in London in the early 18th century and is one of the most successful beer brands worldwide, brewed in almost...
, who had a distribution agreement with Moët-Hennessy, owned 40%. Following the October 1987 stock market crash
Black Monday (1987)
In finance, Black Monday refers to Monday October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin...
, he capitalized on the lower quoted price and soon owned 43% of LVMH. He then consolidated his position by purging executives from both companies including appointing his father Jean Leon Arnault Chairman of the Supervisory board before officially taking over as Chairman & CEO in 1989.
In 2007, he acquired 10.69% of France's largest supermarket retailer and the world's second largest food distributor, Carrefour
Carrefour
Carrefour S.A. is an international hypermarket chain headquartered in Levallois-Perret, France. It is one of the largest hypermarket chains in the world...
through his Blue Capital, which is jointly owned by California property firm Colony Capital.
He has since then 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
Richemont
Compagnie Financière Richemont S.A. is a Swiss luxury goods holding company founded in 1988 by the South African businessman Johann Rupert. Richemont categorizes its businesses into four areas: jewellery, watch making, writing instruments and other, which encompasses clothing and firearms. The...
and French based PPR Group
PPR (company)
PPR is a French multinational holding company specializing in retail shops and luxury brands. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index...
.
Among other companies, Arnault also owned the art auction house Phillips de Pury & Company
Phillips de Pury & Company
Phillips de Pury & Company is an auction house and art dealership, with offices in London, New York, Geneva, Berlin, Brussels, Los Angeles, Milan, Munich and Paris. Phillips conducts auctions in New York, London and Geneva in the areas of Contemporary Art, Photography, 20-21st Century Design, Art...
from 1999 to 2003.
Personal life
Arnault has been married twice, and is the father of five children. His daughter Delphine ArnaultDelphine Arnault
Delphine Arnault is a French businesswoman with the LVMH luxury goods conglomerate. The daughter of Bernard Arnault, she is one of the richest women in the world; on September 24, 2005, she married Alessandro Vallarino Gancia, heir to an Italian wine fortune.-Biography:Arnault was in 2008 one of...
is actively involved in the management of LVMH. His second wife, Hélène Mercier, is a pianist from Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
. His nephew Harry Seaman is also involved in LVMH, overseeing sales and he is currently researching in Australia.
Mr Arnault is a noted art collector. Following the example of business man François Pinault
François Pinault
François Pinault is a French businessman who runs the retail company PPR. He is a friend of former French President Jacques Chirac....
, he created a Louis Vuitton foundation for contemporary art. Designed by Frank Gehry
Frank Gehry
Frank Owen Gehry, is a Canadian American Pritzker Prize-winning architect based in Los Angeles, California.His buildings, including his private residence, have become tourist attractions...
, the construction of the foundation should open at the Jardin d'acclimatation
Jardin d'Acclimatation
The Jardin d'Acclimatation is a children's amusement park with a menagerie, the Exploradôme museum, and other attractions located in the northern part of the Bois de Boulogne, in Paris.-History:...
in 2012.
Arnault was a witness at President Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
's wedding to Cécilia Ciganer-Albéniz
Cécilia Ciganer-Albéniz
Cécilia María Sara Isabel Attias was the second wife of French president Nicolas Sarkozy until October 2007....
. He was also awarded the French Legion of Honour
Légion d'honneur
The Legion of Honour, or in full the National Order of the Legion of Honour is a French order established by Napoleon Bonaparte, First Consul of the Consulat which succeeded to the First Republic, on 19 May 1802...
.
Competitors
Arnault's main business competitors are:- French businessman François-Henri PinaultFrançois-Henri PinaultFrançois-Henri Pinault, born in Rennes, Brittany, France, is a French businessman and the chief executive officer of PPR. He is the son of the company's founder, businessman François Pinault...
, whose holding company PPRPPR (company)PPR is a French multinational holding company specializing in retail shops and luxury brands. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index...
owns GucciGucciThe House of Gucci, better known simply as Gucci , is an Italian fashion and leather goods label, part of the Gucci Group, which is owned by French company PPR...
, Yves Saint LaurentYves Saint Laurent (brand)Yves Saint Laurent or YSL is a luxury fashion house founded by Yves Saint Laurent and his partner, Pierre Bergé. Today, its chief designer is Stefano Pilati. Yves Saint Laurent, founder of the brand, died in 2008.-History:...
, Stella McCartneyStella McCartneyStella Nina McCartney is an English fashion designer. She is the daughter of former Beatles member Sir Paul McCartney and the late photographer and animal rights activist, Linda McCartney.-Early life:...
, Sergio RossiSergio RossiSergio Rossi is an Italian fashion designer and distributor of women's shoes and handbags, as well as a limited range of men's shoes. The Sergio Rossi label is owned by the French conglomerate PPR.-Biography:...
, Bottega VenetaBottega VenetaBottega Veneta is an Italian luxury goods house best known for its leather goods. Founded in 1966, it was purchased in 2001 by Gucci Group, now a part of the French multinational group PPR. Bottega Veneta is headquartered in Vicenza, in the Veneto region of northeastern Italy.- History :Bottega...
, BoucheronBoucheronBoucheron is a French jewellery house.-History:The House of Boucheron is a French family dynasty founded by Frederic Boucheron in 1858....
, Roger & Gallet, Bédat & Co and Christie'sChristie'sChristie's is an art business and a fine arts auction house.- History :The official company literature states that founder James Christie conducted the first sale in London, England, on 5 December 1766, and the earliest auction catalogue the company retains is from December 1766...
.
- Swiss-based RichemontRichemontCompagnie Financière Richemont S.A. is a Swiss luxury goods holding company founded in 1988 by the South African businessman Johann Rupert. Richemont categorizes its businesses into four areas: jewellery, watch making, writing instruments and other, which encompasses clothing and firearms. The...
, which owns CartierCartier SACartier S.A., commonly known as Cartier , is a French luxury jeweler and watch manufacturer. The corporation carries the name of the Cartier family of jewellers whose control ended in 1964 and who were known for numerous pieces including the "Bestiary" , the diamond necklace created for Bhupinder...
, Van Cleef & ArpelsVan Cleef & ArpelsVan Cleef & Arpels is a French jewellery, watch, and perfume company that was founded in 1896 by Charles Arpels and Alfred Van Cleef. They opened their first boutique in 1906 at 22 place Vendôme, Paris...
, PiagetPiaget SAPiaget SA is a Swiss luxury watchmakers and jewellers, founded in 1874 by Georges Piaget in the village of La Côte-aux-Fées. The company belongs to the Swiss Richemont group, specialists in the luxury goods industry....
, Baume et MercierBaume et MercierBaume et Mercier is a Swiss luxury watchmaking company founded in 1830. It is owned by Richemont, and with Cartier and Piaget they make up the core of the group. This company is represented in 75 countries and produces around 200,000 watches a year. The most important markets are in Europe,...
, IWCInternational Watch CompanyInternational Watch Co, also known as IWC, is a high-end Swiss watch manufacturer located in Schaffhausen, Switzerland. IWC is an active member of the Federation of the Swiss Watch Industry FH....
, Jaeger-LeCoultreJaeger-LeCoultreJaeger-LeCoultre is a high-end luxury watch and clock manufacturer based in Le Sentier, Vaud, Switzerland. In addition, Jaeger-LeCoultre also has a long tradition of supplying movements and parts to other prestigious watch companies in Switzerland. Since 1996, Jaeger-LeCoultre has been a fully...
, A. Lange & SöhneA. Lange & SöhneA. Lange & Söhne is a trademark of German watchmaking company Lange Uhren GmbH , a subsidiary of Richemont SA. Lange pocket and wrist watches are among the finest in the world, competing with watches produced by Swiss firms such as Patek Philippe and Vacheron Constantin.- History :Lange was...
, Officine Panerai, Vacheron ConstantinVacheron ConstantinVacheron Constantin is a Swiss manufacture of prestige watches and a brand of the Richemont group. Considered by watch enthusiasts to be one of the finest traditional watch makers in the world along with Patek Philippe & Co., Jaeger-LeCoultre and Audemars Piguet.It employs around 400 people...
, Dunhill, Lancel, MontblancMontblanc (pens)Montblanc International GmbH is a German manufacturer of writing instruments, watches and accessories, often identified by their "White Star" logo.-History:...
, Old England, PurdeyJames Purdey and SonsJames Purdey & Sons - or simply "Purdey" - is a famous British gunmaker of London, and the name is synonymous with the very finest sporting shotguns and rifles. Purdeys hold or have held numerous warrants of appointment as gun and rifle makers to the British and other European royal...
, ChloéChloéChloé is a French fashion house founded in 1952 by Gaby Aghion. Its headquarters is in Paris.-History:Gaby Aghion was born in Alexandria, Egypt in the year 1921...
, and Shanghai TangShanghai TangShanghai Tang is an international clothing chain company, founded in 1994 by Hong Kong businessman David Tang Wing Cheung and now controlled by Richemont.David Tang claimed that Shanghai Tang is a Chinese label that set out to rejuvenate Chinese fashion...
.
Controversies
In January 2007 Kathryn Blair, the daughter of former British Prime MinisterPrime Minister of the United Kingdom
The Prime Minister of the United Kingdom of Great Britain and Northern Ireland is the Head of Her Majesty's Government in the United Kingdom. The Prime Minister and Cabinet are collectively accountable for their policies and actions to the Sovereign, to Parliament, to their political party and...
Tony Blair
Tony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...
, 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.
External links
- Being LVMH's Bernard Arnault- Profile story from WSJ MagazineThe Wall Street JournalThe Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
- A Guide to the Principal Holdings of Bernard Arnault also in WSJ MagazineThe Wall Street JournalThe Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....